The Federal Trade Commission (FTC) has initiated an investigation into TikTok’s privacy and security practices, as revealed by two undisclosed sources to CNN.
This development adds further complexity to the challenges confronting the social media platform, already under the shadow of a potential US ban or a mandated divestment from its Chinese parent company.
According to the sources, the FTC’s scrutiny centers on TikTok’s alleged violation of the Children’s Online Privacy Protection (COPPA) rule, which mandates companies to inform parents and acquire consent before gathering data from children under 13.
Moreover, the agency is examining whether TikTok contravened a segment of the FTC Act that prohibits “unfair or deceptive” business practices by denying access to TikTok user data to individuals in China.
One source suggested that the FTC might pursue legal action against TikTok or opt for a settlement with the company in the forthcoming weeks. Politico initially reported on the investigation.
When queried about the probe, FTC Director of Public Affairs Douglas Farrar responded with a terse “No comment.”
TikTok has refrained from immediate comment on the matter.
The FTC’s investigation unfolds amidst existential threats looming over TikTok in the US. Recently, a bipartisan coalition in the US House of Representatives endorsed legislation mandating TikTok’s sale by ByteDance or facing expulsion from US app stores. The bill now awaits Senate deliberation, with President Joe Biden expressing his readiness to endorse it upon reaching his desk. Nonetheless, Senate leaders have indicated a cautious approach, implying potential delays or the bill’s demise.
Owned by the Chinese firm ByteDance, the short-form video company has rebuffed claims of posing a national security risk to US citizens. TikTok, which operates independently of China, has asserted that the Chinese government has never accessed US user data.
Despite these assurances, cybersecurity experts highlight Chinese laws compelling ByteDance to comply with national intelligence demands, raising concerns about potential risks to US user data. In response, TikTok has undertaken measures such as storing US user data on cloud servers overseen by US tech giant Oracle and instituting internal protocols restricting access by non-US personnel.
TikTok acknowledged to Congress in 2022 that Chinese-based employees could access US user data, following a report by BuzzFeed News alleging ByteDance staff had accessed such information on multiple occasions. During his maiden appearance before Congress last year, TikTok CEO Shou Chew also admitted to several ByteDance employees being dismissed for surveilling specific US journalists as part of a “misguided attempt” to identify company leakers.
