Tech
FTC Chair Lina Khan
FTC Chair Lina Khan (Getty Images )

FTC says TikTok is "violating or are about to violate" child privacy laws

The Federal Trade Commission took the unusual step of issuing a public statement saying it had referred a complaint involving TikTok and its parent company, ByteDance, to the US Department of Justice, writing that an “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.”

While it didn’t lay out the nature of the complaint, the FTC, which primarily enforces antitrust law, said the referral stemmed from an agency review of whether TikTok was in compliance with a 2019 FTC settlement between TikTok’s predecessor Musical.ly, over violations of the Children’s Online Privacy Protection Act, or COPPA, which bars companies from getting information from children under 13 years old without parental consent. The $5.7 million penalty was, at the time, the largest ever fine for COPPA violations.

In March, the Associated Press reported that the FTC was investigating TikTok’s data and security practices.

The public statement on the referral was a notable departure from the FTC’s typical approach to quietly refer matters to the Justice Department.

“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 FTC said. “We look forward to our continued partnership with the Department of Justice in this and other matters as we advance our shared interest in protecting the American people and in enforcing the law without fear or favor.”

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Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

tech
Rani Molla

Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

tech
Rani Molla

Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

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