On Tuesday, the FTC referred a complaint against TikTok and its parent company ByteDance for potential pediatric privacy violations to the Justice Department
According to a source who spoke to Reuters in March, the FTC could resolve an investigation into TikTok’s allegedly faulty privacy and data security practices by filing a lawsuit or reaching a settlement.
“The investigation uncovered reason to believe named defendants are violating or are about to violate the law and that a proceeding is in the public interest, so the Commission has voted to refer a complaint to the Department of Justice,” the Federal Trade Commission stated in a statement.
Reuters initially reported in 2020 that the FTC and the U.S. Justice Department were investigating allegations that the popular social media app had not adhered to a 2019 agreement designed to safeguard the privacy of minors.
“The Commission does not typically disclose that it has referred a complaint to the public; however, we have determined that doing so in this instance is in the public interest,” the statement continued, without further details.
TikTok disclosed on Tuesday that it has collaborated with the Federal Trade Commission (FTC) for over a year to resolve the agency’s inquiries.
“We’re disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution,” TikTok reported.
“We strongly disagree with the FTC’s allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed.”
The investigation is distinct from the ongoing apprehensions in Congress regarding the possibility of the Chinese government unlawfully accessing the data of TikTok’s 170 million U.S. users. TikTok denies the allegation.
TikTok is scheduled to submit its legal brief in its lawsuit filed on Thursday, challenging a law enacted in April.
The law mandates that ByteDance, TikTok’s Chinese parent company, must divest its U.S. assets by January 19 or face a ban.
