 "TikTok faces a potential new storm, because of the way it handled children's data in the US. Image Credit: Reuters")
It seems that TikTok and ByteDance simply can’t catch a break in the US. In the midst of an ongoing battle against a proposed legislation that could potentially lead to its ban in the United States, TikTok now faces the looming threat of action from the Federal Trade Commission (FTC).
As reported by Politico, the FTC is nearing the conclusion of a lengthy investigation into the popular social media platform, which may culminate in a major lawsuit or substantial fines.
The focal point of the investigation reportedly revolves around TikTok’s privacy and security practices, particularly its handling of user data belonging to children.
Politico indicates that the FTC is scrutinizing potential breaches of the Children’s Online Privacy Protection Act (COPPA), along with allegations suggesting that the company misrepresented its policies by falsely asserting that individuals in China lacked access to data belonging to US users.
Additionally, TikTok could face penalties for violating the terms outlined in its 2019 settlement with regulators regarding data privacy.
While the outcome of the FTC’s investigation remains uncertain, the mounting regulatory pressure poses significant challenges for TikTok as it endeavours to safeguard its foothold in its largest market. Notably, following swift approval in the House, the Senate is deliberating a bill that would compel TikTok’s parent company, ByteDance, to divest the app or confront an outright prohibition in the US
The Biden Administration has thrown its support behind this measure, echoing efforts to coerce ByteDance into relinquishing control of TikTok. Furthermore, US intelligence officials have briefed lawmakers on purported national security concerns associated with the app, adding further complexity to TikTok’s predicament.
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