FTC Refers Complaint Against TikTok and ByteDance to DOJ Over Potential Law Violations

FTC Refers Complaint Against TikTok to DOJ Over Possible Violations

The Federal Trade Commission (FTC) recently referred a complaint against TikTok and its parent company, ByteDance, to the Department of Justice (DOJ) following an investigation that raised concerns about possible violations of the law. The FTC’s investigation was initiated as part of a compliance review of social media platform Musical.ly, which had previously reached a settlement over alleged violations of the Children’s Online Privacy Protection Act (COPPA). ByteDance acquired Musical.ly in 2017 and merged it with TikTok in 2018.

While the FTC did not specify the alleged violations, it stated that the investigation uncovered reasons to believe that the named defendants were either violating or about to violate the law. The FTC deemed it necessary to refer the complaint to the DOJ, considering it to be in the public interest. This move demonstrates the FTC’s commitment to enforcing laws and protecting the American people.

COPPA, which requires parental consent for websites and online services targeting children under the age of 13, was a key focus of the investigation. In February 2019, operators of Musical.ly agreed to pay a $5.7 million settlement for illegally collecting children’s personal information. At that time, this penalty was the largest ever obtained by the FTC in a children’s privacy case.

The referral to the DOJ comes on the heels of a separate lawsuit filed by Utah against TikTok. The lawsuit accuses TikTok of operating a “virtual strip club” that exposes young users to sexual exploitation. Utah aims to put an end to TikTok’s alleged profiting from deceptive design features that facilitate illegal acts through its virtual currency system. The lawsuit claims that TikTok’s “TikTok Live” feature, among other elements, contributes to the exploitation of children.

In response to these allegations, TikTok emphasized its commitment to user safety and well-being. The platform stated that it has industry-leading policies and measures in place to protect teenagers. TikTok also mentioned that it revokes access to certain features if an account is found to be underage.

The controversies surrounding TikTok have not been limited to legal battles. Earlier this year, the company faced scrutiny from lawmakers in Washington over concerns about child safety and other issues. President Joe Biden signed a law in April prohibiting the distribution of TikTok in the United States unless its Chinese parent company, ByteDance, divests its ownership by January 19, 2025. TikTok filed a petition to block the law, arguing that the required divestment is not feasible commercially, technologically, or legally.

Both TikTok and the DOJ filed a joint petition, urging a federal appeals court to expedite consideration of the challenge. The goal is to obtain a decision by December 6, allowing for potential Supreme Court review before the mandated deadline. Arguments in favor of forced divestment cite national security concerns, aiming to prevent the Chinese Communist Party from influencing Americans and accessing their data through TikTok’s algorithm. Those against it argue that it violates the First Amendment.

The Senate passed a bill in 2022 to ban TikTok on all government devices, further highlighting the ongoing concerns regarding the platform’s operations. As of April 2024, TikTok had amassed over 120 million users in the United States.

In conclusion, the referral of a complaint against TikTok to the DOJ by the FTC underscores the seriousness of the alleged violations and the determination to enforce laws that protect user privacy and safety. These developments come amidst ongoing legal battles and concerns surrounding TikTok’s operations, such as its alleged facilitation of sexual exploitation and national security risks. The outcome of these cases will have significant implications for both TikTok and its millions of users in the United States.