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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Jury finds Meta and Google liable in social addiction case

A Los Angeles jury found Meta and Google liable of designing Instagram and YouTube to be addictive for young users, awarding the plaintiff $3 million in damages, with Meta responsible for 70% of the total. The trial centered on whether features like autoplay and infinite scroll contributed to a plaintiff’s mental health issues — and could set a precedent for holding tech companies responsible for product design, not just content.

The jury also found that Meta and Google could face punitive damages, with a separate phase of the trial to determine how much they should pay.

The decision comes just one day after a New Mexico judge ordered Meta to pay $375 million in civil penalties, saying it violated state consumer protection laws by enabling child sexual exploitation.

The jury also found that Meta and Google could face punitive damages, with a separate phase of the trial to determine how much they should pay.

The decision comes just one day after a New Mexico judge ordered Meta to pay $375 million in civil penalties, saying it violated state consumer protection laws by enabling child sexual exploitation.

AI image of Sam Altman grilling Pikachu

Sora lasted less than one Quibi

OpenAI’s app joins the hallowed halls of video ideas that burned bright and fast.

$75B

SpaceX, which could file confidential paperwork for its IPO as soon as this week, is now aiming to raise an astounding $75 billion through its public listing, The Information reports. That’s 50% higher than previous reports.

For comparison’s sake, the current record holder for money raised in an IPO is Saudi Aramco, which raised $29.4 billion. Or, as The Information noted, SpaceX’s IPO would “surpass all money raised by US IPOs last year.”

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