The United States Federal Trade Commission (FTC) announced on Tuesday (June 18) that the investigation into TikTok will be handed over to the Department of Justice. Previously, the FTC was investigating whether this social media company violated child privacy regulations and another regulation prohibiting “unfair or deceptive” business practices.
FTC Chair Lina Khan stated in a statement on X, “Our investigation has found reason to believe that TikTok is violating or about to violate FTC regulations and the Children’s Online Privacy Protection Act (COPPA).”
She said the case has been transferred to the Civil Division of the Department of Justice.
TikTok and FTC spokespeople did not immediately respond to requests for comments from various media outlets.
Over the years, TikTok has faced widespread scrutiny in the United States due to its relationship with its parent company ByteDance and the Chinese Communist Party. In April of this year, President Joe Biden signed a law stipulating that unless TikTok is sold within a year, it will face a ban. The company is challenging this law in court.
In May 2020, several U.S. senators wrote to the FTC, requesting an investigation into TikTok. They believed that there was evidence indicating TikTok infringed on the privacy of child users and failed to comply with terms of a 2019 settlement with the FTC.
The senators mentioned a report authored by over 20 children’s advocacy groups in their letter. Researchers in the report stated that TikTok failed to delete personal data of children under 13, violating terms agreed upon with the FTC in 2019, and also did not provide parents with options to review and delete their children’s data.
Last month, the U.S. House of Representatives’ Select Committee on the Chinese Communist Party also wrote to the FTC, requesting an investigation into TikTok for sending pop-up notifications asking users for personal information and encouraging them to contact Congress regarding the TikTok ban, potentially violating child online safety laws.
The lawmakers in the letter cited reports that some American children, prompted by TikTok, called members of Congress and threatened suicide if legislative efforts continued.
In 2019, TikTok paid a $5.7 million settlement to resolve FTC charges of illegally collecting children’s personal information, the largest civil penalty levied by the FTC in a children’s privacy case.
According to the FTC’s statement on Wednesday, the agency will continue to collaborate with the Department of Justice on investigating the company.
“While the Commission typically does not disclose the fact that it has referred complaints to the Department of Justice, we believe that doing so is in the public interest. We look forward to continuing to work with the Department of Justice to promote our shared interest in protecting the American people and fearless enforcement of the law,” the FTC stated.
A Justice Department spokesperson told Politico, a U.S. political media outlet, that the Justice Department could not comment on the substantive content of the case transferred by the FTC.
“As is our practice, the Department of Justice consults with the FTC prior to such referrals and will continue to do so as we consider potential fines. The Department of Justice will guide its actions as always based on facts, the law, and our responsibility to protect the American people.”
These actions reflect the ongoing regulatory and legal challenges facing TikTok in the United States due to concerns over privacy, national security, and children’s safety. The investigations and potential consequences shed light on the complexities of regulating technology companies with global reach.