Under the condition of anonymity, the Federal Trade Commission is looking into TikTok’s data and security policies.
For the social media network, which is already in danger of a possible US ban or being forced to separate from its Chinese parent firm, the investigation is just one more hurdle.
According to the sources, TikTok is being investigated by the FTC for allegedly breaking the Children’s Online Privacy Protection rule, which mandates that businesses get parental permission before collecting any data from children under the age of 13.
According to the sources, the agency is also looking into whether TikTok broke the FTC Act by refusing to allow users’ data to be accessed by those in China. This provision of the Act forbids “unfair or deceptive” business activities.
One of the sources claims that in the upcoming weeks, the FTC may file a lawsuit against TikTok or reach a settlement with the business. Politico first broke the story of the investigation.
“No comment,” was the response given by FTC Director of Public Affairs Douglas Farrar when questioned about the probe.
An instant comment was not received from TikTok.
The US existential danger to TikTok is the reason behind the FTC investigation. A bipartisan group in the US House of Representatives voted earlier this month to enact legislation mandating that ByteDance sell TikTok or else it would be removed from US app stores. President Joe Biden has stated he would sign the law if it reaches his desk, and it is currently before the Senate. However, Senate leaders have stated that they are proceeding methodically, which may cause delays or bring the House bill to an end.
The Chinese corporation ByteDance, which owns the short-form video company, has refuted claims that its app risks US citizens’ national security.
According to TikTok, which is not present in China, the Chinese government has never accessed user data from Americans.
Cybersecurity experts claim that ByteDance is obligated by Chinese law to comply with the nation’s intelligence requests. This could potentially jeopardize US user data, as ByteDance owns TikTok. To solve that problem, TikTok has implemented internal protocols that restrict access by non-US workers and moved its user data from US users onto cloud servers run by US tech giant Oracle.
After BuzzFeed News revealed in 2022 that ByteDance employees had obtained US user data many times, TikTok admitted to Congress in 2022 that staff based in China could access such data. In his initial testimony before Congress last year, TikTok CEO Shou Chew confessed that a “misguided attempt” to find leakers within the company led to the firing of numerous ByteDance workers for spying on specific US journalists.