The Federal Trade Commission (FTC) has announced it’s referred a complaint against TikTok and parent company ByteDance to the Department of Justice.

The investigation originally focused on Musical.ly which was acquired by ByteDance on November 10, 2017, and merged it into TikTok.

The FTC started a compliance review of Musical.ly following a 2019 settlement with the company for violations of the Children’s Online Privacy Protection Act (COPPA). In the settlement, Musical.ly received a fine of $5.7m for collecting personal information from children without parental consent.

One of the main concerns was that Musical.ly did not ask the user’s age and later failed to go back and request age information for people who already had accounts.

COPPA requires sites and services like Musical.ly and TikTok – among other things – to get parental consent before collecting personal information from children under 13.

Musical.ly also failed to deal with complaints properly. The FTC found that—in just a two-week period in September 2016—the company received over 300 complaints from parents asking Musical.ly to delete their child’s account. However, under COPPA it’s not enough just to delete existing accounts, companies have to remove the kids’ videos and profiles from the company’s servers; Musical.ly failed to do this.

In 2022, TikTok itself faced a $28m fine for failing to protect children’s privacy after an investigation of a possible breach of the UK’s data protection laws.

In the US, TikTok agreed to pay $92 million in 2021 to settle dozens of lawsuits alleging that it harvested personal data from users, including information using facial recognition technology, without consent, and shared the data with third parties.

The FTC states that during the investigation it uncovered reasons to believe that “defendants are violating or are about to violate the law and that a proceeding is in the public interest.”

The FTC also said it usually doesn’t publicize the referral of complaints but feels it is in the public interest to do so now.

TikTok has been in the crosshairs of privacy and security professionals and politicians for years.

In June 2022,  the FCC (Federal Communications Commission), called on the CEOs of Apple and Google to remove TikTok from their app stores considering it an unacceptable national security risk because of its Chinese ownership.

In 2023, General Paul Nakasone, Director of the National Security Agency (NSA) referred to TikTok as a loaded gun in the hands of America’s TikTok-addicted youth.

Recently, we reported about the take-over of some high-profile TikTok accounts just by opening a Direct Message.

And the clock is ticking when it comes to TikTok’s presence in the US, after the US Senate has approved a bill that would effectively ban TikTok from the US unless Chinese owner ByteDance gives up its share of the still immensely popular app.

Somehow we don’t think we’ve heard the last of this.

Check your digital footprint

Malwarebytes has a new free tool for you to check how much of your personal data has been exposed online. Submit your email address (it’s best to give the one you most frequently use) to our free Digital Footprint scan and we’ll give you a report and recommendations.

Information newly made available under California law has shed light on data broker practices, including exactly what categories of information they trade in.

Any business that meets the definition of data broker must register with the California Privacy Protection Agency (CPPA) annually. The CPPA defines data brokers as businesses that consumers don’t directly interact with, but that buy and sell information about consumers from and to other businesses.

Where there’s money to be made you’ll find companies and individuals that will go to any length to get a piece of the action. At the moment there are around 480 data brokers registered with the CPPA. However, that might be just the tip of the iceberg, because there are a host of smaller players active that try to keep a low profile. There are 70 fewer data brokers listed than last year, but it is questionable whether they went out of business or just couldn’t be bothered with all the regulations tied to being a listed data broker.

The law requires registered data brokers to disclose in which of the following categories they actively trade information in:

• Minors (24)
• Precise Geolocation (79)
• Reproductive healthcare data (25)

Four of these data brokers are active in all three of these categories: LexisNexis Risk Solutions, Harmon Research Group, Experian Marketing Solutions, and BDO USA, P.C., Global Corporate Intelligence group.

What is particularly disturbing is the traffic in the data of minors. Children require special privacy protection since they’re more vulnerable and less aware of the potential risks associated with data processing.

When it comes to children’s data, the CCPA requires businesses to obtain opt-in consent to sell the data of a person under the age of 16. Children between the ages of 13 and 16 can provide their own consent, but for children under the age of 13, businesses must obtain verifiable parental consent before collecting or selling their data.

Data brokers were under no obligation to disclose information about selling data belonging to minors until the Delete Act was signed into law on October 10, 2023. The Delete Act is a Californian privacy law which provides consumers with the right to request the deletion of their personal information held by various data brokers subject to the law through a single request.

The next step forward would be if more states followed California’s example. So far only four states—California, Vermont, Oregon, and Texas—have enacted data broker registration laws.

The Children’s Online Privacy Protection Act (COPPA), which regulates children’s privacy, does not currently prevent companies from selling data about children. An update for the bill (COPPA 2.0), that would enhance the protection of minors, is held up in Congress.

In Texas, data brokers are governed by Chapter 509 of the Business and Commerce Code and this includes the specification that each data broker has a “duty to protect personal data held by that data broker.” This is important because, as we have seen, breaches at these data brokers can be combined with others and result in a veritable treasure trove of personal data in the hands of cybercriminals.

Check your digital footprint

If you want to find out how much of your data has been exposed online, you can try our free Digital Footprint scan. Fill in the email address you’re curious about (it’s best to submit the one you most frequently use) and we’ll send you a free report.

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