US drops claims that TikTok misled users over Chinese access in privacy lawsuit

The Department of Justice plans to proceed with allegations that the ByteDance-owned app violated the law by collecting data on children under 13 years old.

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TikTok is fighting allegations in the US that it violated the Children’s Online Privacy Protection Act. Photo: AFP

Published: 11:58am, 21 Jun 2024Updated: 2:34pm, 21 Jun 2024

The US Justice Department won’t pursue allegations that ByteDance’s TikTok misled US consumers about their data security in a forthcoming suit accusing the company of children’s privacy violations, according to people familiar with the decision.

The department is preparing to file a consumer protection lawsuit against TikTok later this year on behalf of the US Federal Trade Commission, which investigated the case, according to the people, who asked not to be identified discussing inter-agency communications.

The FTC gave the Justice Department a referral with two parts. The Justice Department plans to drop one part of the complaint alleging that TikTok deceived US consumers by failing to inform them that Beijing-based employees of its parent company, ByteDance, would have access to their personal and financial information, the people said. The DOJ plans to proceed with allegations the company violated the Children’s Online Privacy Protection Act, which bars collecting data about children under the age of 13.

TikTok CEO Shou Zi Chew testifies before a House Energy and Commerce Committee hearing in Washington on March 23, 2023. Photo: AFP

TikTok has faced enormous scrutiny over the security of user data and ties between its parent company, ByteDance, and the Chinese government. President Joe Biden in April signed a law that would ban TikTok unless it is sold within a year. The company is challenging the law in the courts.

The department declined to comment on the decision to drop the allegations that TikTok misled consumers about data privacy. The FTC declined to comment on the DOJ’s decision.

When the Justice Department represents another agency in court, it has the authority to determine the best litigation strategy to ensure there are no conflicts with national security concerns or other cases.

“Consistent with our normal approach, the Justice Department consulted with FTC in advance of this referral and will continue to do so as we consider the claims,” spokesman Terrence Clark said. “As always, the department will be guided by the facts and the law as well as our responsibility to protect the American people.”