The Federal Trade Commission has referred a complaint against TikTok and its parent company, ByteDance, to the Department of Justice. The FTC stated that it found reason to believe that the companies are violating the Children’s Online Privacy Protection Act, a law mandating parental consent for collecting personal information from children under 13. Additionally, potential violations of the FTC Act were cited.
A spokesperson for the Justice Department confirmed the referral and emphasized the importance of considering the claims in accordance with the law to protect the public. The investigation is said to be related to allegations of deceptive practices, including claims that TikTok denied sharing U.S. user data with individuals in China.
TikTok responded by expressing disappointment in the FTC's decision to pursue litigation rather than continuing to collaborate on a resolution. The company disagreed with the allegations, stating that many were factually inaccurate or had already been addressed.
The FTC's inquiry originated from a compliance review of a 2019 settlement with Musical.ly, TikTok's predecessor, which was acquired by ByteDance. Musical.ly had previously agreed to pay $5.7 million to settle claims of violating children's privacy laws.
While the FTC typically does not publicize complaints referred to the DOJ, it deemed it necessary in this instance due to the public interest. In a separate development, U.S. lawmakers passed a law in April requiring TikTok to be sold to an approved buyer or face a nationwide ban, citing national security concerns. TikTok and ByteDance have filed a lawsuit challenging the law signed by President Joe Biden.
