{"id":3258,"date":"2020-09-18T06:00:51","date_gmt":"2020-09-18T11:00:51","guid":{"rendered":"http:\/\/blogs.luc.edu\/compliance\/?p=3258"},"modified":"2020-09-18T06:00:51","modified_gmt":"2020-09-18T11:00:51","slug":"is-tiktok-as-big-of-a-deal-as-trump-claims","status":"publish","type":"post","link":"https:\/\/blogs.luc.edu\/compliance\/?p=3258","title":{"rendered":"Is TikTok as Big of a Deal as Trump Claims?"},"content":{"rendered":"<p><span style=\"font-family: 'times new roman', times, serif\"><em>Chandler Wright<\/em><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><em>Associate Editor<\/em><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><em>Loyola University Chicago School of Law, JD 2022<\/em><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">TikTok continues to rise in popularity, though their history of complaints and lawsuits paints a different picture. On February 27, 2019 the Federal Trade Commission (FTC) <a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2019\/02\/video-social-networking-app-musically-agrees-settle-ftc\">settled<\/a> with TikTok for $5.7 million in response to a child privacy complaint. This settlement was the largest civil penalty obtained for a child privacy complaint, prompting TikTok to take <a href=\"https:\/\/www.complianceweek.com\/grapevine\/embattled-tiktok-appoints-global-general-counsel\/28374.article\">corrective action<\/a> by hiring compliance focused employees. Consumer groups now argue that TikTok has <a href=\"https:\/\/www.nytimes.com\/2020\/05\/14\/technology\/tiktok-kids-privacy.html\">failed<\/a> to make such changes and continues to \u201cflout the law\u201d. In response to national security concerns, President Trump signed an <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/executive-order-addressing-threat-posed-tiktok\/\">executive order<\/a> on August 6, 2020 effectively banning the application in the U.S.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><!--more--><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><strong>TikTok\u2019s rising popularity <\/strong><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">COVID-19 stay-at-home measures caused millions of users to flock to the already trending social networking platform, TikTok (formerly Muiscal.ly). In March 2020, the application reported 11 million downloads and an April 2020 <a href=\"https:\/\/sensortower.com\/blog\/tiktok-downloads-2-billion\">report<\/a> now claims that TikTok surpassed 2 billion downloads, making TikTok\u2019s first quarter of 2020 the best quarter for any application to date. Among the application\u2019s more than 800 million users are bloggers, artists, chefs, and most notably, minors. In 2019, military recruiters even <a href=\"https:\/\/www.military.com\/daily-news\/2019\/07\/09\/army-embraces-memes-tiktok-it-nears-2019-recruiting-goal.html\">utilized<\/a> the application as an effective way to approach Generation Z recruits, until the Department of Defense released a Defense Department Cyber Awareness Message indicating potential national security risks associated with having the application on government devices.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><strong>TikTok\u2019s history of complaints and class action lawsuits<\/strong><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">On February 27, 2019 the FTC filed a <a href=\"https:\/\/www.ftc.gov\/system\/files\/documents\/cases\/musical.ly_complaint_ecf_2-27-19.pdf\">complaint<\/a> against TikTok alleging a violation of the Children\u2019s Online Privacy Protection Act of 1998 (<a href=\"https:\/\/www.ftc.gov\/enforcement\/rules\/rulemaking-regulatory-reform-proceedings\/childrens-online-privacy-protection-rule\">COPPA<\/a>). COPPA was enacted by Congress to protect children from the unauthorized collection of their personal information by websites and applications. Further, a violation of COPPA constitutes an \u201cunfair or deceptive act or practice in or affecting commerce\u201d thus violating <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/15\/45\">15 U.S.C \u00a745(a).<\/a> TikTok specifically violated COPPA when it failed to obtain parental consent before collecting personal data from children under the age of 13. Personal data includes basic information such as names, emails, phone numbers, and pictures. However, a <a href=\"https:\/\/www.classaction.org\/media\/er-et-al-v-tiktok-inc-et-al.pdf\">complaint<\/a> filed in the Northern District of Illinois by Illinois minors on May 8, 2020 seeks to include biometric data in that definition.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">Biometric data goes beyond names and demographics and can constitute fingerprints and facial recognition data. The current <a href=\"https:\/\/www.classaction.org\/media\/er-et-al-v-tiktok-inc-et-al.pdf\">complaint<\/a> alleges a violation of the <a href=\"https:\/\/www.ilga.gov\/legislation\/ilcs\/ilcs3.asp?ActID=3004&amp;ChapterID=57\">Illinois Biometric Information Privacy Act (BIPA),<\/a> claiming that TikTok failed to obtain consent before collecting \u201cface geometry\u201d scans. The complaint alleges that TikTok\u2019s facial recognition technology scans every uploaded video and extracts geometric data pertaining to contours of an individual\u2019s face and then stores a template of each face without informing the user or obtaining the appropriate consent. This <a href=\"https:\/\/www.classaction.org\/media\/er-et-al-v-tiktok-inc-et-al.pdf\">complaint<\/a> came shortly after TikTok settled a <a href=\"https:\/\/www.musicallyclassactionsettlement.com\/\">class action<\/a> lawsuit for $1.1 million in response to allegations that user data was being transferred to Chinese servers to track the locations and activities of U.S. residents. On May 19, 2020, a <a href=\"https:\/\/www.classaction.org\/media\/aj-v-tiktok-inc-et-al.pdf\">class action<\/a> lawsuit was subsequently filed in the Northern District of California in response to BIPA violations.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><strong>What measures are being taken?<\/strong><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">In response to TikTok\u2019s 2019 COPPA violation, they agreed to pay $5.7 million. This <a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2019\/02\/video-social-networking-app-musically-agrees-settle-ftc\">settlement<\/a> is the largest civil penalty to ever be obtained by the FTC for a children\u2019s privacy complaint, indicating that COPPA is to be taken seriously by application developers moving forward. As a part of the settlement, TikTok agreed to obtain parental consent moving forward and to retroactively delete videos of children under 13. In January 2020, TikTok took corrective and preventative action by <a href=\"https:\/\/www.complianceweek.com\/grapevine\/embattled-tiktok-appoints-global-general-counsel\/28374.article\">appointing<\/a> a veteran attorney from Microsoft, Erich Andersen, to serve as the application\u2019s global general counsel. TikTok also sought to hire an Ethics and Compliance Manager via a <a href=\"https:\/\/www.linkedin.com\/jobs\/view\/ethics-compliance-manager-at-tiktok-1417077708\/\">job posting<\/a> on LinkedIn.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">Many are asking whether these measures are enough. For example, a May 14, 2020 <a href=\"https:\/\/www.nytimes.com\/2020\/05\/14\/technology\/tiktok-kids-privacy.html\">New York Times article<\/a> indicates that consumer groups are not pleased with TikTok\u2019s attempts at corrective action. In a <a href=\"https:\/\/www.nytimes.com\/2020\/05\/14\/technology\/tiktok-kids-privacy.html\">complaint<\/a> to the FTC, consumer groups led by the Center for Digital Democracy and the Campaign for a Commercial Free Childhood claimed that many videos were not effectively taken down and the application\u2019s age verification system posed serious concerns amounting to risks of sexual predation.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\"><strong>What concerns does Trump have?<\/strong><\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times, serif\">While there is no doubt that TikTok made a name for itself among American youth, it now appears that the application has permeated into the homes of every American. On August 6, 2020 President Trump signed an <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/executive-order-addressing-threat-posed-tiktok\/\">executive order<\/a> effectively banning the application in the U.S., but his method of keeping TikTok off American devices remains unclear to the public. Technology policy and national security experts <a href=\"https:\/\/www.npr.org\/2020\/08\/06\/900019185\/trump-signs-executive-order-that-will-effectively-ban-use-of-tiktok-in-the-u-s\">say<\/a> that this means the application would likely no longer receive advertising from American companies. TikTok could then be taken off of American app stores making user updates impossible, thus rendering the app nonfunctional on user devices. This ban is said to <a href=\"https:\/\/www.businessinsider.com\/how-the-tiktok-ban-in-the-us-works-2020-9\">take effect<\/a> on September 20th.\u00a0 The order states that the biggest concern to the American people is the potential for the Chinese Communist Party to access personal and proprietary information, including the locations of federal employees. What started out as an FTC concern related to child safety, is now a national security threat leaving Americans waiting to see how such measures will play out.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TikTok continues to rise in popularity, though their history of complaints and lawsuits paints a different picture. On February 27, 2019 the Federal Trade Commission (FTC) settled with TikTok for $5.7 million in response to a child privacy complaint. This settlement was the largest civil penalty obtained for a child privacy complaint, prompting TikTok to take corrective action by hiring compliance focused employees. Consumer groups now argue that TikTok has failed to make such changes and continues to \u201cflout the law\u201d. In response to national security concerns, President Trump signed an executive order on August 6, 2020 effectively banning the application in the U.S.<\/p>\n","protected":false},"author":78,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[289,407,534,571,837,914,1623,1953,2017],"class_list":["post-3258","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-biometric-information-privacy-act","tag-class-action","tag-covid-19","tag-data-privacy","tag-federal-trade-commission","tag-ftc","tag-cybersecurity","tag-technology","tag-trump-administration"],"_links":{"self":[{"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=\/wp\/v2\/posts\/3258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=\/wp\/v2\/users\/78"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3258"}],"version-history":[{"count":0,"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=\/wp\/v2\/posts\/3258\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.luc.edu\/compliance\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}