TikTok Might Get Sued If The FTC Investigates Its Data Practices

(CTN News) – An individual familiar with the matter says the Federal Trade Commission is investigating TikTok’s data and security practices, a probe that may result in the company being sued or settled.

This investigation is the latest battle in Washington for the social media giant, which is already battling against a federal bill that has the potential to ban the platform in the United States if it fails to break ties with its parent company, ByteDance, located in Beijing.

According to the person who is not authorized to discuss the investigation, the FTC is investigating whether TikTok violated a portion of federal law prohibiting “unfair and deceptive” business practices by denial that individuals in China had access to U.S. user data in its investigation.

Also, the agency is looking into potential violations of the Children’s Online Privacy Protection Act, which requires kid-oriented apps and websites to obtain parents’ consent before collecting personal information from children under the age of 13.

The FTC and TikTok spokespersons declined to comment on the investigation, which was first reported by Politico.

TikTok and the agency are nearing the conclusion of their investigation, and a settlement may be reached in the coming weeks. An agreement, however, does not have a deadline, according to the individual.

As an alternative to filing a lawsuit, the FTC would have to refer the case to the Justice Department, which would have 45 days to decide whether to file a lawsuit on behalf of the FTC, make revisions or return the case to the FTC for further action.

A report from Buzzfeed News alleging employees of ByteDance in China have repeatedly accessed data on U.S. citizens comes nearly two years after Senate Intelligence Committee Chairman Mark Warner and Marco Rubio, the top Republican on the committee, called for the FTC to investigate TikTok, citing a report from Buzzfeed News. Those who use TikTok.

After attempting to track down leaks of confidential company information, ByteDance fired four employees in late 2022 who had access to Buzzfeed News and The Financial Times’ data on journalists.

The House of Representatives has approved legislation that could determine TikTok’s fate in the United States. A number of roadblocks have already been encountered by the bill in the Senate, where there is little consensus on how to best address the concerns over the social media platform.

Lawmakers and intelligence officials have expressed concern that the Chinese government may use the platform to access U.S. user data or to manipulate Americans through its algorithm. Until now, there is no evidence that this has occurred on the part of the American government.

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