📺 Stream EntrepreneurTV for Free 📺

TikTok to Pay $5.7 Million Fine For Violating Children's Privacy Law They failed to ask for parental consent when collecting the personal information from users under the age of 13.

By Michael Kan

entrepreneur daily

This story originally appeared on PCMag

via PC Mag

TikTok, a video-sharing app popular among pre-teens, is facing a $5.7 million fine from the FTC for illegally collecting the personal information of children.

The penalty applies to Musical.ly, the video lip-syncing app that TikTok absorbed last August as part of an acquisition. The FTC claims Musical.ly violated the Children's Online Privacy Protection Act (COPPA) by failing to ask for parental consent when collecting the personal information from users under the age of 13.

The collected information included names, email addresses, phone numbers and profile pictures, which were needed to register for the app. Accounts made over Musical.ly were also set on public by default, which allowed adults to track and even contact underage users over the platform, the FTC said in its announcement.

"The operators of the Musical.ly app were aware that a significant percentage of users were younger than 13 and received thousands of complaints from parents that their children under 13 had created Musical.ly accounts," the FTC added.

The $5.7 million fine is the largest civil penalty that the commission has ever issued in a children's privacy case. "This record penalty should be a reminder to all online services and websites that target children: We take enforcement of COPPA very seriously, and we will not tolerate companies that flagrantly ignore the law," said FTC chairman Joe Simons in a statement.

It isn't clear how many children were affected, but Musical.ly had a total of 65 million registered users in the US, according to the FTC.

TikTok, which is own by China's Bytedance, has agreed to pay the fine. As part of the settlement, the video-sharing app must also take down all videos made by users under the age of 13, and begin complying with COPPA.

In a statement, TikTok said its created a new app experience for underage users that "does not permit the sharing of personal information." However, the new experience will feature some major limitations as well.

"In the younger ecosystem, users cannot do things like share their videos on TikTok, comment on others' videos, message with users, or maintain a profile or followers," the service said. "However, they will be able to experience what TikTok is at its core -- showcasing creativity -- as they enjoy curated content and experiment with TikTok's unique, fanciful, and expressive features."

"Both current and new TikTok users will be directed to the age-appropriate app experience, beginning today," the service added.

Michael Kan

Reporter

Michael has been a PCMag reporter since October 2017. He previously covered tech news in China from 2010 to 2015, before moving to San Francisco to write about cybersecurity.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Business News

Site Traffic Down? Google Just Made Some Big Search AI Changes

Google's search changes have revenue-impacting implications for many websites.

Business News

Netflix Is the New Home for Christmas Day NFL Games

The NFL is set to release the rest of its full regular season 2024 schedule at 8 p.m. EST Wednesday.

Employee Experience & Recruiting

The Best Hires Often Have No Experience At All. Here Are 6 Unconventional Traits This CEO Looks For When Hiring The Best Person For The Job.

Experience counts for a lot when hiring, but don't forget about these unconventional traits, which are often key to determining an employee's success in an organization.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Walmart to Lay Off Hundreds of Employees, Relocate Remote Workers Back to the Office

The news comes just a day ahead of the company's highly-anticipated Q1 2024 earnings report.