Illustration: Aïda Amer/Axios
The FTC announced Tuesday it has referred a complaint to the Justice Department against TikTok over potential violations of the federal law governing children's privacy.
The big picture: The FTC says its investigation found "reason to believe" that TikTok has violated or will soon violate the law.
Driving the news: The FTC's complaint against TikTok and its parent company ByteDance has to do with TikTok's compliance with the Children's Online Privacy Protection Act.
- The FTC began reviewing that compliance in 2019, after it settled with TikTok's predecessor Musical.ly for violating COPPA.
Per a statement from the FTC, the agency investigated "additional potential violations" of COPPA and the FTC Act.
- "The investigation uncovered reason to believe named defendants are violating or are about to violate the law and that a proceeding is in the public interest," resulting in the DOJ referral, per the statement.
What they're saying: "Although the Commission does not typically make public the fact that it has referred a complaint, we have determined that doing so here is in the public interest," the statement reads.
The other side: "We've been working with the FTC for more than a year to address its concerns. We're disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution," TikTok spokesperson Alex Huarek said.
- "We strongly disagree with the FTC's allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed."
The FTC's rare public statement comes just days before TikTok and ByteDance have filings due in federal court for their case against the government over the divest-or-ban bill signed by President Biden earlier this year.
What's next: The DOJ can now choose to pursue the FTC's referral and go after TikTok in federal court for violations of the law.
