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Home»Business
Business

The FTC is Investigating TikTok for Data Practices, Potential Lawsuit Looms

March 27, 2024No Comments3 Mins Read
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The Federal Trade Commission (FTC) is currently investigating TikTok over its data and security practices, with concerns that the social media company may have violated federal laws regarding the collection and protection of user data. The investigation is also looking into potential violations of the Children’s Online Privacy Protection Act, which requires parental consent for collecting information from children under 13. The agency is nearing the end of its investigation and could reach a settlement with TikTok in the near future, but there is no specific deadline for an agreement. If the FTC decides to pursue a lawsuit instead, the case would need to be referred to the Justice Department for further action.

The probe into TikTok’s practices comes after reports that ByteDance, TikTok’s parent company based in Beijing, had employees accessing data on U.S. TikTok users. In 2022, ByteDance confirmed that it had fired four employees for accessing data on journalists from Buzzfeed News and The Financial Times in an attempt to track down leaks of confidential information about the company. This investigation into potential data breaches and unauthorized access by employees in China has raised concerns among lawmakers, particularly within the Senate Intelligence Committee, which recommended the FTC look into TikTok’s practices. The news of the investigation comes at a crucial time for TikTok, as legislation that could potentially ban the platform in the U.S. has been approved in the House but faces challenges in the Senate.

The bill that could impact TikTok’s future in the U.S. has faced roadblocks in the Senate, where there is disagreement on the best approach to address concerns related to the platform’s ties to China. Lawmakers and intelligence officials have expressed worries that TikTok could be used by the Chinese government to access U.S. user data or influence American citizens through its algorithm. Despite these concerns, there has been no public evidence provided by the U.S. government to support these claims. The potential for a ban or regulation of TikTok in the U.S. has prompted the company to face scrutiny over its data practices and security measures, leading to the current investigation by the FTC. The outcome of this investigation could have significant implications for TikTok’s future operations in the U.S. and its ability to retain its user base.

Both the FTC and TikTok have declined to comment on the ongoing investigation, which was first reported by Politico. The FTC’s involvement in this probe demonstrates the agency’s commitment to enforcing laws related to privacy and security in the digital realm, particularly when it comes to protecting the personal information of users, especially children. As the investigation nears its conclusion, the possibility of a settlement with TikTok remains on the table, but if no agreement is reached, the FTC may decide to pursue legal action against the company. The outcome of this investigation will likely have far-reaching consequences not just for TikTok but for the broader social media landscape, as regulators and lawmakers grapple with how to address the challenges posed by the increasing influence of foreign-owned platforms on American users.

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