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Tag: User Data

  • Department of Justice sues TikTok, accusing the company of illegally collecting children’s data

    Department of Justice sues TikTok, accusing the company of illegally collecting children’s data

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    The Justice Department sued TikTok on Friday, accusing the company of violating children’s online privacy law and running afoul of a settlement it had reached with another federal agency. The complaint, filed together with the Federal Trade Commission in a California federal court, comes as the U.S. and the prominent social media company are embroiled in yet another legal battle that will determine if – or how – TikTok will continue to operate in the country. Related video above: About 3 in 5 Americans View TikTok as a Threat to National Security, PEW Research Center study findsThe latest lawsuit focuses on allegations that TikTok, a trend-setting platform popular among young users, and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13.TikTok did not immediately respond to a request for comment. “This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.The U.S. decided to file the lawsuit following an investigation by the FTC that looked into whether the companies were complying with a previous settlement involving TikTok’s predecessor, Musical.ly.In 2019, the federal government sued Musical.ly, alleging it violated the Children’s Online Privacy Protection Act, or COPPA, by failing to notify parents about its collection and use of personal information for kids under 13.That same year, Musical.ly — acquired by ByteDance in 2017 and merged with TikTok — agreed to pay $5.7 million to resolve those allegations. The two companies were also subject to a court order requiring them to comply with COPPA, which the government says hasn’t happened. In the complaint, the Justice Department and the FTC allege TikTok has knowingly allowed children to create accounts and retained their personal information without notifying their parents. This practice extends to accounts created in “Kids Mode,” a version of TikTok for children under 13, Justice said in a press release explaining the lawsuit. The two agencies allege the information collected included activities on the app and other identifiers used to build user profiles. They also accuse TikTok of sharing the data with other companies – such as Meta’s Facebook and an analytics company called AppsFlyer – to persuade “Kids Mode” users to be on the platform more, a practice TikTok called “re-targeting less active users.” The complaint says TikTok also allowed children to create accounts without having to provide their age, or obtain parental approval, by using credentials from third-party services. It classified these as “age unknown” accounts, which the agencies say have grown into millions.After parents discovered some of their children’s accounts and asked for them to be deleted, federal officials said their requests were not honored. In a press release explaining the lawsuit, Justice said the alleged violations have resulted in millions of children under 13 using the regular TikTok app, allowing them to interact with adults and access adult content. In March, a person with the matter had told the AP the FTC’s investigation was also looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data. Those allegations were not included in the complaint, which is seeking civil penalties and injunctive relief.

    The Justice Department sued TikTok on Friday, accusing the company of violating children’s online privacy law and running afoul of a settlement it had reached with another federal agency.

    The complaint, filed together with the Federal Trade Commission in a California federal court, comes as the U.S. and the prominent social media company are embroiled in yet another legal battle that will determine if – or how – TikTok will continue to operate in the country.

    Related video above: About 3 in 5 Americans View TikTok as a Threat to National Security, PEW Research Center study finds

    The latest lawsuit focuses on allegations that TikTok, a trend-setting platform popular among young users, and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13.

    TikTok did not immediately respond to a request for comment.

    “This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.

    The U.S. decided to file the lawsuit following an investigation by the FTC that looked into whether the companies were complying with a previous settlement involving TikTok’s predecessor, Musical.ly.

    In 2019, the federal government sued Musical.ly, alleging it violated the Children’s Online Privacy Protection Act, or COPPA, by failing to notify parents about its collection and use of personal information for kids under 13.

    That same year, Musical.ly — acquired by ByteDance in 2017 and merged with TikTok — agreed to pay $5.7 million to resolve those allegations. The two companies were also subject to a court order requiring them to comply with COPPA, which the government says hasn’t happened.

    In the complaint, the Justice Department and the FTC allege TikTok has knowingly allowed children to create accounts and retained their personal information without notifying their parents. This practice extends to accounts created in “Kids Mode,” a version of TikTok for children under 13, Justice said in a press release explaining the lawsuit.

    The two agencies allege the information collected included activities on the app and other identifiers used to build user profiles. They also accuse TikTok of sharing the data with other companies – such as Meta’s Facebook and an analytics company called AppsFlyer – to persuade “Kids Mode” users to be on the platform more, a practice TikTok called “re-targeting less active users.”

    The complaint says TikTok also allowed children to create accounts without having to provide their age, or obtain parental approval, by using credentials from third-party services. It classified these as “age unknown” accounts, which the agencies say have grown into millions.

    After parents discovered some of their children’s accounts and asked for them to be deleted, federal officials said their requests were not honored. In a press release explaining the lawsuit, Justice said the alleged violations have resulted in millions of children under 13 using the regular TikTok app, allowing them to interact with adults and access adult content.

    In March, a person with the matter had told the AP the FTC’s investigation was also looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data.

    Those allegations were not included in the complaint, which is seeking civil penalties and injunctive relief.

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  • Web3 surveillance proves we need on-chain data ownership | Opinion

    Web3 surveillance proves we need on-chain data ownership | Opinion

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    Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

    Blockchain is famous for showing everything in the open—every transaction, clear as day. It’s like a glass house where everything is visible, and that’s been its big selling point. But there’s a catch: this see-through world is too revealing. It’s like we’ve walked into a room with glass walls, forgetting that others can look in if we can look out. This crystal-clear world reminds us of the old days of the internet (web1), where all information flowed freely. Sadly, it also started to resemble the world in which web1 became web2, and data began to be gathered, analyzed, and monetized. A world where our online moves were—and still are—tracked without us knowing.

    The beauty of blockchain lies in its honesty and integrity, but it also bears the shadow of over-transparency. Like in web2, where tech giants constantly monitor online activities and gather data, blockchain’s openness allows anyone curious to observe our digital actions—with financial data visible out in the open (considered sensitive and encrypted data in web2). The very attribute that underpins blockchain’s reliability—its transparency—also introduces a level of exposure that might be more than what some users bargained for.

    Blockchain was envisioned as a revolutionary space, granting us authority over digital presence. But as technology advances, there is a middle ground that promises a blockchain experience that respects user autonomy, offering a transparent yet controlled digital environment. 

    This new level of transparency in blockchain is innovative, but it also comes with some risks. The open ledger becomes a double-edged sword. Users, particularly those new to the blockchain world, are exposed to risks they hadn’t anticipated. The visibility of their transactions can lead to targeted phishing attacks, where malicious actors exploit transaction data to craft convincing scams. 

    This vulnerability extends beyond individual privacy concerns, touching the fabric of the decentralized ethos that web3 champions. The promise of a decentralized future was built on the pillars of user empowerment and security, but this level of exposure could inadvertently lead to a centralization of power in the hands of those who know how to exploit on-chain transparency.

    The ethos of decentralization is rooted in the empowerment of the individual, a shift away from the centralized control that characterized web2. However, the current state of blockchain transparency could unintentionally replicate the very dynamics it sought to dismantle. In a world where every transaction is an open book, the power dynamics shift towards those who can access, analyze, and leverage this information. 

    This scenario could lead to a new digital divide, where the savvy few exercise disproportionate influence over the many. It challenges the core principles of decentralization, potentially leading to a web3 that mirrors its predecessor’s centralized, controlled landscape.

    In the face of these challenges, advocating for on-chain data ownership emerges as a crucial solution, a beacon of hope in preserving the decentralized ethos of web3. Blockchain data ownership shifts the narrative from passive transparency to active control.

    This approach hands users the reins of their digital presence, empowering them to choose what remains visible and what stays private. By giving control back to the users, on-chain data ownership addresses the surveillance issue head-on, ensuring that blockchain remains a tool for empowerment rather than a passive ledger of public information.

    Empowering users to control their data and transaction visibility is the key to balancing the blockchain’s necessary transparency and user autonomy. This control can be implemented through various means, such as privacy-enhancing protocols or selective disclosure mechanisms that allow users to share necessary transaction information while keeping other details private. Such capabilities ensure that the blockchain can serve its purpose as a transparent and trustable ledger without compromising the autonomy and discretion of its users.

    Vitalik Buterin brings an exciting twist to the tale regarding on-chain transparency. In his writings, Buterin suggests that privacy and regulation go hand in hand in the blockchain world. He challenges the old belief that everything on the blockchain has to be out in the open to keep things above board. There is a path that connects the two worlds. As Buterin states:

    “In many cases, privacy and regulatory compliance are perceived as incompatible; this does not necessarily have to be the case if the privacy-enhancing protocol enables its users to prove certain properties regarding the origin of the funds.”

    Think of them as digital cloaks that let you show only what you need on the blockchain, like proving where your funds came from without revealing your entire life story. It’s like having a magic wallet that shows your ID when needed but keeps your cash hidden. These tools let us keep our data private while ensuring everything’s legit and above board. It’s a game-changer because we can be part of the blockchain world without feeling like living in a fishbowl.

    We are at a turning point for blockchain. Blockchain’s been tremendous at showing everything, but maybe it’s shown a bit too much. Web3 starts to resemble web1 when the internet had just begun turning web2, and every click started to be monitored, noted, and analyzed. Do we want to stay in web3, where information is decentralized and users own their data, or do we want to enter web4, which will once again profit from data appropriation? The answer is clear: we need to empower users by data ownership in web3.

    It’s time to grab that remote and start deciding what to show and what to keep under wraps. Users aren’t passengers on the blockchain train; they drive it. Blockchain can be a place where everyone enjoys the view without worrying about who’s peeking in.

    Matan Almakis

    Matan Almakis is the Head of Project at Data Ownership Protocol (DOP), reshaping web3 by pioneering data ownership. With a track record in driving growth at Lamina, a Layer 1 blockchain, where he contributed to Israel’s first IoT-focused L1 blockchain, Matan now leads DOP in ensuring that web3 users share their data exactly how and with whom they want. Matan believes encrypting sensitive financial data on the chain is a fundamental human right and often speaks about how data ownership is crucial for web3’s mass adoption. Matan leverages blockchain to solve real-world problems with a human-centered approach.


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  • Decentralized real-time communication is the solution for data privacy | Opinion

    Decentralized real-time communication is the solution for data privacy | Opinion

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    Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

    The COVID-19 pandemic gave a 3-4x boost to digital transformations and adoptions worldwide. During its peak in 2020, 58% of global consumer interactions happened digitally.

    Once users, consumers, and employees experienced the upsides of digital interactions—more flexibility or freedom, lower commutation time, etc.—they mostly didn’t want to go back. Online channels became the “new normal” for both personal and professional communications. 

    But while there’s good reason for tech optimists to celebrate this shift, it’s vital to identify and mitigate the risks coming along. For example, centralized real-time communication (RTC) platforms like Skype, Zoom, Slack, etc., pose severe data-mining and privacy violation threats to users.

    Solving these problems will enable users to fully leverage digital communications’s power. Web3 has unlocked new opportunities to this end. Decentralized real-time communication (dRTC) innovations are ongoing and will put users in control of digital interactions and data. 

    Centralized RTC networks are rivalrous private goods

    Most existing RTC platforms are “private goods” with one primary goal: profit maximization. They usually have a freemium model where users can onboard and use the product with zero or minimal costs. But as the saying goes, if you’re not paying for it, you are the product. 

    Web2 communication giants have been infamously guilty of mining user data and monetizing them via third-party ads and other channels. Zoom, for instance, was caught shipping users’ personal information to Meta from the moment they logged on. 

    The data set included everything from contact information to the user’s device model, unique advertising ID—everything. More concerningly, the packets are transport encrypted and not content encrypted. This means the encryption breaks at the server end, allowing Zoom to see and read users’ data. 

    Notably, Zoom supplied the said information even for users who didn’t have a Facebook account. While it seems weird, this reveals how legacy digital communications and advertising are totally company-centric rather than user-led. “Help us provide the best experience” is a farce. 

    “The unique advertising identifier allows companies to target the user with advertisements,” as the lawsuit against Zoom stated. It’s all about the platform or service provider(s) making the most money out of the user’s data with little care for ethics or fairness. Whereas users don’t have much control over the fuel of digital economies—i.e., data—despite being its primary source. 

    Legacy RTC systems are skewed and broken from every angle. Besides unethical practices, they are prone to external hacks and breaches due to excessive centralization and single points of failure. The rise in high-profile “Zoombombing” cases provides concerning evidence. 

    Moreover, in 2019, Slack had to reset user passwords four years after a security breach in March 2015. This shows how the actual lifecycle of data breaches can be longer than the global 200-day average IBM highlighted in its “Cost of a Data Breach” report in 2023. 

    Last but not least, centralized RTC networks face significant performance bottlenecks when there are sudden spikes in user activity. Particularly for users with low bandwidth and connection speeds, legacy A/V communications can be frustratingly choppy.  

    ‘Privacy is for those who’re hiding something’

    Count this among the most notorious and misleading claims of the century. It’s a ploy for corporations to gaslight users into giving up control over their digital lives and data. And trading privacy for convenience was the best users could do so far, for the lack of alternative tools. 

    Web3, however, is here to change things for good. Privacy is a foundational principle for this ecosystem, building on Joseph Kupfer’s idea that it’s indispensable for autonomy and freedom. Access to private and secure communication channels lets users choose which thoughts, feelings, or information they want to share and with whom. 

    Rather than a haven for criminals and wrongdoers, privacy is a way to retain basic human dignity and safety. Because, as Edward Snowden rightly said, knowing too much about us gives Big Tech firms the power ‘to create permanent records of private lives.’ It’s like we’re living our lives in someone’s database. 

    These records can be used to influence users’ decisions, behaviors, and choices—literally everything about who they are. And with legacy giants betraying totalitarian tendencies via incidents involving Cambridge Analytica to Pegasus, there’s good reason to associate platforms like Zoom with the NSA.

    dRTC innovations will put users back in control

    Tim Berners-Lee envisioned the World Wide Web as a decentralized realm where everyone can access ‘the best information at any time.’ We have come a long way from that point. The web is no longer only about consuming/accessing information but also about creating, storing, and sharing data. Yet, this is also the journey of users losing control in the ways discussed above. 

    It’s clear that centralization and private profit-maximization motives have been the main culprits in this story. Legacy RTC platforms and service providers don’t have the incentives to prioritize end-user privacy and focus only on pumping their bags. They are rent extractive by nature, and mere ethical arguments won’t change a thing. 

    Decentralized real-time communication (dRTC) networks, however, can set the record straight and align incentives for companies and end-users. Moving beyond simple peer-to-peer frameworks popular in the very early days of web3’s evolution, they unlock secure wallet-to-wallet communications. This enhances anonymity by giving users an option besides the typical IP/email address-based communications. 

    Innovative dRTC frameworks also use Insertable Streams and Sframes for robust end-to-end encryptions. This ensures better security against surveillance and censorship. It’s challenging for any unwarranted third party to intrude into these channels, which only verified participants can access. 

    On the other hand, breaking down siloed architectures and using globally distributed data points (nodes) gives dRTC a significant performance boost. Even users with weak internet connections can access high-quality A/V communications in this manner, democratizing access in unforeseen ways. 

    Most importantly, the wallet-based dRTC infrastructure is absolutely user-centric, as individuals remain in complete control of their data at all times. The community orientation of web3-native dRTC protocols ensures that rules are implemented or modified through consensus, not at the whims and fancy of any centralized entity. Unlike legacy RTC models, dRTC networks foster sovereign and circular economies where value ultimately returns to the community that produces it. 

    Thus, dRTC is the new frontier for digital communications, and its implications stretch beyond secure data and information sharing. It’s a way to provide genuine mechanisms for free speech and self-expression. Last but not least, dRTC will enable the socio-economic dApp paradigm. It’ll thus go a long way in making communities worldwide more robust, resilient, and self-sufficient, fostering inclusion and progress across the board. 

    Susmit Lavania

    Susmit Lavania is the co-founder and CTO of Huddle01. Before Huddle01, Susmit was co-founder and CEO of OC2, India’s first decentralized exchange, which was acquired by CoinDCX in 2019. With CEO Ayush Ranjan, Huddle01 was founded in 2020 to make real-time communication open, secure, and borderless by leveraging blockchain and crypto-economics. Today, Huddle01’s video meeting platform has clocked in over one million minutes of meetings. The team is currently building the first decentralized real-time communication (RTC) network, emphasizing user-powered nodes, safeguarding privacy and security, and enabling high-quality, scalable interactions.


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