By Chris
The company behind the popular lip-syncing app TikTok has agreed to pay nearly $6 million as part of a record-breaking settlement with the Federal Trade Commission over claims that it “illegally collected” sensitive data from children — including voice recordings and geolocation.
“This is the largest civil penalty ever obtained by the Commission in a children’s privacy case,” FTC officials said in a statement.
Details of the $5.7 million settlement were posted Wednesday on the agency’s website, along with an outline of the allegations that were made against TikTok — which was formerly known as Musical.ly before it was acquired by the Chinese company ByteDance in 2017.
In the FTC’s complaint, officials claimed that TikTok operators violated the Children’s Online Privacy Protection Act, or COPPA. The federal law requires websites and online services to obtain “parental consent” before collecting personal info from children under the age of 13.
TikTok allegedly “knew many children were using the app but they still failed to seek parental consent before collecting names, email addresses, and other personal information,” according to FTC Chairman Joe Simons.
“This record penalty should be a reminder to all online services and websites that target children,” he said. “We take enforcement of COPPA very seriously, and we will not tolerate companies that flagrantly ignore the law.”
In a separate statement, FTC commissioners Rohit Chopra and Rebecca Kelly Slaughter vowed to take further action against TikTok should investigators uncover more “disturbing practices” in the future.
“In our view, these practices reflected the company’s willingness to pursue growth even at the expense of endangering children,” the pair said. “FTC investigations typically focus on individual accountability only in certain circumstances—and the effect has been that individuals at large companies have often avoided scrutiny. We should move away from this approach. Executives of big companies who call the shots as companies break the law should be held accountable…As we continue to pursue violations of law, we should prioritize uncovering the role of corporate officers and directors and hold accountable everyone who broke the law.”
In response to the settlement, TikTok also released a statement on Wednesday saying it “implemented changes to accommodate younger US users in a limited, separate app experience that introduces additional safety and privacy protections designed specifically for this audience.”
“We have always worked to provide our users with the best possible platform to foster their creativity,” the statement said. “Beginning today, this additional app experience now allows us to split users into age-appropriate TikTok environments, in line with FTC guidance for mixed audience apps. The new environment for younger users does not permit the sharing of personal information, and it puts extensive limitations on content and user interaction. Both current and new TikTok users will be directed to the age-appropriate app experience.”
