TikTok's problems in the US could intensify as the Federal Trade Commission (FTC) is likely to take legal action or levy substantial penalties against the company and its parent company, ByteDance, for improperly handling children's data privacy and security. This development comes as a long-term investigation into its data management practices wraps up.
It appears as though TikTok and ByteDance are having a tough time in the US. Amidst a continuous struggle with a suggested law that might result in its prohibition in the United States, TikTok is now under the impending risk of repercussions from the Federal Trade Commission (FTC).
Politico has reported that the FTC is close to wrapping up an extensive probe into the well-known social media network, which could potentially result in a significant lawsuit or hefty penalties.
The investigation is primarily focused on TikTok's privacy and security measures, especially how it manages the user data of children.
Politico reports that the FTC is closely examining possible violations of the Children's Online Privacy Protection Act (COPPA), and claims that the company incorrectly stated its policies by wrongly claiming that people in China didn't have access to data of US users.
Furthermore, TikTok might be subject to fines if it breaches the conditions specified in its 2019 agreement with authorities concerning data protection.
The results of the FTC's inquiry are still unclear, but the increasing scrutiny from regulators presents considerable obstacles for TikTok as it strives to secure its position in its biggest market. Importantly, after a quick approval in the House, the Senate is now considering a bill that would force TikTok's parent company, ByteDance, to sell off the app or face a complete ban in the US.
The Biden administration has expressed its endorsement for the measure, reflecting previous attempts to pressure ByteDance into surrendering control over TikTok. In addition, US intelligence authorities have informed legislators about alleged national security risks linked to the app, which further complicates TikTok's situation.
(Incorporating information from various sources)
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