
The US Federal Trade Commission (FTC) has filed a complaint against social media giant TikTok and its parent company Bytedance, saying it has reason to believe they are “violating or are about to violate the law.” The federal agency said it had conducted an extensive investigation and found breaches of the Children’s Online Privacy Protection Act (COPPA) and the FTC Act, which governs business practices and requires fairness and transparency.
COPPA legislation governs online data collection from children under 13, but FTC officials would not provide details on the nature of the complaint. The alleged violations were referred to the Department of Justice, which likewise did not comment further except to say it had worked with the FTC before the referral.
The move places extra pressure on the Chinese company, which is already facing the prospect of a nationwide US ban. President Biden signed a law in April obliging Bytedance to either sell TikTok or be barred from the United States. TikTok chief Shou Zi Chew vowed to fight the decree, calling it unconstitutional. “The facts and the Constitution are on our side. Rest assured, we aren’t going anywhere,” he said.
Lawmakers have long expressed concerns about TikTok, particularly after FBI Director Christopher Wray designated the video-sharing platform a national security threat. Mr. Wray alleged that TikTok is collecting data from millions of American users and using this for the Chinese government’s benefit. Wray insisted that Bytedance is “beholden” to the Chinese Communist Party (CCP) and is “attempting to steal our AI and hack American technology every day.”
Last March, the House Energy and Commerce Committee grilled Shou Zi Chew for several hours on Capitol Hill. He insisted the Chinese government does not lift any data and has no control over the company.
TikTok spokesperson Brooke Oberwetter later stated that the hearing was political showmanship and did not consider the implications of banning a platform American businesses rely on or the impact on First Amendment free speech guarantees.