US govt might sue Chinese-owned TikTok for allegedly deceiving users

The US Federal Trade Commission has been investigating social media platform TikTok, which is owned by the China-based company ByteDance, for faulty privacy practices and might decide to sue the platform, alleging that it violates a children's privacy law and misleads its users by saying that China has no access to their personal data, Politico reported, citing three people with direct knowledge of the matter.

IBNS • 27 Mar 2024, 07:43 am

The commission is weighing whether to sue or settle with TikTok, the newspaper reported on Tuesday, adding that the agency was in talks with the US Justice Department over the issue.

In the event the lawsuit is filed and granted, the platform could face penalties of tens of billions of dollars, the report added.

On March 13, the US House of Representatives passed legislation that requires TikTok to cut ties with its parent China-based company, ByteDance, within 180 days or face a ban in the US, amid concerns about user privacy and foreign influence ahead of the November presidential election.

TikTok has denied that its application poses a security threat to US users. The United States, European Union, and Canada recently banned their government employees from using TikTok on official electronic devices.

(With UNI inputs)