The US Federal Trade Commission announced on Tuesday that it has referred a complaint against TikTok and its parent company ByteDance to the Department of Justice. The agency was investigating the company for possible violations of the Children’s Online Privacy Act and was looking into whether TikTok had violated a law prohibiting “unfair and deceptive” business practices.
“The investigation revealed reason to believe that the named defendants are violating or are about to violate the law and that the action is in the public interest, so the Commission voted to refer a complaint to the Department of Justice, in accordance with the procedures set forth in the FTC Act.” The agency said in a statement.
TikTok released a Public statement She noted that she has been working with the FTC for more than a year to address her concerns, and that she is “disappointed” that the agency is pursuing the lawsuit.
“We strongly disagree with the FTC’s allegations, many of which relate to past events and practices that are factually inaccurate or have been doctored,” TikTok’s statement said. “We are proud and remain deeply committed to the work we have done to protect children and will continue to update and improve our products.”
The FTC notes that while it does not typically announce that it has referred a complaint, it has “determined that doing so here is in the public interest.”
TikTok paid $5.7 million in 2019 to settle Federal Trade Commission allegations that it illegally collected personal information from children. The settlement represents the largest civil penalty the FTC has ever obtained in a children’s privacy case, according to the FTC.
The announcement comes as TikTok faces increasing scrutiny in the United States
In April, President Biden I signed the bill This will result in TikTok being banned if ByteDance fails to sell it within a year. The action was the result of years of concern from US lawmakers who feared ByteDance would leak US user data to the Chinese government. TikTok and ByteDance responded to the bill by suing the government, arguing that the law violates the US Constitution’s commitment to “freedom of expression and individual liberty.”