The US Justice Department is dropping one of two proposed claims against ByteDance Ltd.’s TikTok, choosing to focus a consumer protection lawsuit on children’s privacy rather than allegations of misleading consumers about data security. The lawsuit, to be filed later this year on behalf of the US Federal Trade Commission (FTC), will proceed with claims that TikTok violated the Children’s Online Privacy Protection Act (COPPA), which prohibits collecting data on children under 13.
Key Points
- Dropped Claims: The Justice Department will not pursue allegations that TikTok misled US consumers by not informing them that Beijing-based employees of ByteDance had access to their personal and financial information.
- Focus on Children’s Privacy: The lawsuit will concentrate on allegations that TikTok violated COPPA.
- Background: TikTok has been under scrutiny for data security and its ties to the Chinese government. President Joe Biden signed a law that could ban TikTok unless it is sold within a year, a decision currently being challenged in court by the company.
- Interagency Coordination: The Justice Department, which represents other agencies in court, consulted with the FTC to ensure alignment on the litigation strategy.
- FTC’s Role: The FTC must refer cases involving monetary penalties or violations of federal consumer protection laws to the Justice Department for litigation.
Statements
- Justice Department: Spokesman Terrence Clark emphasized that the department will be guided by facts, law, and its responsibility to protect the American people.
- FTC: Declined to comment on the DOJ’s decision to drop the data privacy allegations.
The decision reflects a strategic focus on children’s online privacy while addressing national security concerns and other legal considerations.
