The FTC and DOJ sued TikTok and ByteDance for violating COPPA by collecting personal information from children under 13 without parental consent. The complaint alleges that TikTok knowingly allowed millions of children on its platform and failed to comply with a 2019 consent order. The lawsuit seeks civil penalties and a permanent injunction.
The FTC is seeking civil penalties and a permanent injunction against TikTok and ByteDance to prevent future COPPA violations.
In-house legal teams should review customer-facing agreements (Terms of Service, Privacy Policies), data processing agreements (DPAs) with third parties, and any vendor contracts involving data sharing or advertising. Focus on clauses governing consent for personal data collection from minors, age verification procedures, data retention and deletion policies for children's data, and breach notification protocols involving underage users. Given the alleged violation of a 2019 FTC consent order, contracts must be updated to include robust, verifiable parental consent mechanisms, explicit prohibitions on collecting data from users under 13 without compliance, and audit rights to ensure ongoing COPPA adherence. Consider adding indemnification provisions for child privacy violations and requiring subcontractors to follow identical standards.
Entity
TikTok and ByteDance
Also known as: TikTok
Industry
Social MediaOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-investigation-leads-lawsuit-against-tiktok-bytedance-flagrantly-violating-childrens-privacy-law
bytedance complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/bytedance_complaint.pdf
video social networking app musically agrees settle ftc alle
https://www.ftc.gov/news-events/news/press-releases/2019/02/video-social-networking-app-musically-agrees-settle-ftc-allegations-it-violated-childrens-privacy
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"TikTok, its parent company ByteDance, as well as its affiliated companies"
"violating a children’s privacy law—the Children’s Online Privacy Protection Act"
"The FTC Act allows civil penalties up to $51,744 per violation, per day."
"failed to comply with the COPPA requirement to notify and obtain parental consent before collecting and using personal information from children under the age of 13."
"August 2, 2024"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.