US sues TikTok over 'massive-scale' privacy violations of kids under 13
Adds TikTok statement, lawmaker comment, more on possible fines
By David Shepardson
WASHINGTON, Aug 2 (Reuters) -The U.S. Justice Department filed a lawsuit Friday against TikTok and parent company ByteDance for failing to protect children's privacy on the social media app as the Biden administration continues its crackdown on the social media site.
The government said TikTok violated the Children's Online Privacy Protection Act that requires services aimed at children to obtain parental consent to collect personal information from users under age 13.
The Chinese-owned short-video platform boasts around 170 million U.S. users, and is currently fighting a new law that would force ByteDance to divest TikTok's U.S. assets by Jan. 19 or face a ban.
The lawsuit is the latest U.S. action against TikTok and its Chinese parent over fears the company improperly collects vast amounts of data on Americans for the Chinese government, while influencing content in a way that could harm Americans.
The suit, which was joined by theFederal Trade Commission, said it was aimed at putting an end "to TikTok's unlawful massive-scale invasions of children's privacy."
Representative Frank Pallone, the top Democrat on the Energy and Commerce Committee, said the suit "underscores the importance of divesting TikTok from Chinese Communist Party control. We simply cannot continue to allow our adversaries to harvest vast troves of Americans’ sensitive data."
TikTok said Friday it disagrees "with these allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed. We are proud of our efforts to protect children, and we will continue to update and improve the platform."
The DOJ said TikTok knowingly permitted children to create regular TikTok accounts, and then create and share short-form videos and messages with adults and others on the regular TikTok platform. TikTok collected personal information from these children without obtaining consent from their parents.
The U.S. alleges that for years millions of American children under 13 have been using TikTok and the site "has been collecting and retaining children's personal information."
"TikTok knowingly and repeatedly violated kids’ privacy, threatening the safety of millions of children across the country,” said FTC Chair Lina Khan, whose agency in June referred the case to the Justice Department.
The FTC is seeking penalties of up to $51,744 per violation per day from TikTok for improperly collecting data, which could theoretically total billions of dollars if TikTok were found liable.
Reuters in 2020 first reported the FTC and Justice Department were looking into allegations the popular social media app failed to live up to a 2019 agreement aimed at protecting children's privacy.
The company last year faced fines from the European Union and U.K. over its handling of children's data.
On Tuesday, U.S. Senate passed a bill that would extend COPPA to cover teenagers up to age 17, ban targeted advertising to kids and teens, and give parents and kids the option to delete their information from social media platforms.
The bill would need to pass in the Republican-controlled House, currently on recess until September, to become law.
Reporting by Jody Godoy and David Shepardson
Editing by Nick Zieminski and Chris Sanders
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
