At a glance.
- The latest on the proposed sale of TikTok.
- FTC asks social media platforms for info on deceptive advertising.
The latest on the proposed sale of TikTok.
Quartz reports that the UK and New Zealand have become the latest countries to ban popular video sharing app TikTok. Following in the footsteps of other countries including the US, Canada, and Belgium, the two governments announced they’re prohibiting the use of TikTok on the work devices of civil servants and ministers. On Monday, UK prime minister Rishi Sunak told ITV News: “We want to make sure that we protect the integrity and security of sensitive information. And we will always do that and take whatever steps are necessary to make sure that happens.”
As we discussed earlier this week, insiders say the White House is demanding that ByteDance, the China-based company that owns TikTok, sell its stakes in the platform or face a potential full ban of the app in the US. Reuters reports that TikTok has confirmed it was contacted by the Treasury’s Committee on Foreign Investment in the United States, demanding that the Chinese owners of the app sell their shares. However, TikTok says that if the US is worried about national security, the sale of the platform will have little impact. TikTok spokesperson Maureen Shanahan told CBS News, "The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing." China's foreign ministry yesterday responded by saying the US has provided no evidence that TikTok is a threat to national security and that the US is using suppression tactics. The Information notes that some China-based experts say the US’s ultimatum will likely end in a stand-off, as the Chinese government will likely fight any attempts to have TikTok’s ownership shift to non-Chinese hands. One Chinese tech founder told the Information, “Why would China agree? Would you agree if you were in charge in Beijing?”
Meanwhile, US Senator Mark Warner, a Democrat out of Virginia, has proposed the Restrict Act, which would give the US government the power to quickly ban any tech company suspected of foreign espionage. The measure would grant the Commerce Secretary the authority to review and, under certain conditions, prohibit the use of technologies that US intelligence has determined are a threat to national security. Warner told Wired, “The Restrict Act says, let's look at six countries that have been designated as potential adversaries—China, Russia, North Korea, Iran, Cuba, and Venezuela—and provide the commerce secretary the tools needed to mitigate, including forcing a company to sell off its assets, up to the point of banning.” The tech owners would have the ability to protest, and Warner says the intelligence community would need to be transparent (when possible) about the reasoning behind such decisions. Still, if passed, the Restrict Act could have a major impact on the US’s foreign competitors.
Has connectivity become an attractive nuisance? Chris Handscomb, EMEA Solutions Engineer at Centripetal, writes about the risk of pervasive connectivity. “Just a decade ago, the notion of corporate managers and government officials possessing smart mobile devices that could instantly access work information was a novelty. Today, these devices are ubiquitous, and internet speeds have vastly improved, enabling individuals to consume copious amounts of high-quality content at the click of a finger," Handscomb explained in emailed comments. "However, with this heightened connectivity, communication, and entertainment, there is the possibility of malicious actors exploiting device vulnerabilities and gathering sensitive data. This sometimes very personal data can then be sold to the highest bidder creating a risk factor for companies and government agencies where (potentially compromised) individual contributors are handling sensitive trade or state secrets and may now be vulnerable to blackmail. It is therefore imperative that companies and government agencies prioritize their security measures, safeguarding their employees and enterprises from potential threats.”
Tom Kellermann, senior vice president of cyber strategy at Contrast Security, quotes DIRNSA on the danger TikTok presents: “Gen. Nakasone, Head of Cyber Command, likened TikTok to a loaded gun. We have entered a brave new world. The US must thwart the unfettered access to American digital lives and mitigate the ongoing espionage campaign. The US will force a sale of the company to an American entity. If not sold, it will be banned.”
Chris Hauk, consumer privacy champion at Pixel Privacy, thinks this in not the end of government suspicion of TikTok. “We'll likely continue to see governments crack down on TikTok use by government officials, employees, and the military," Hauk wrote. "The US is putting similar restrictions in place, while Canada, Belgium, and the European Commission already bar the app from being installed on government phones. I'd like to see the ban on social apps expand to other apps, including Facebook, Twitter, and others. While there isn't currently any concern over foreign governments having access to data from these services, users have a tendency to "over share," meaning government info could be inadvertently shared on these networks.”
FTC asks social media platforms for info on deceptive advertising.
The US Federal Trade Commission (FTC) has issued orders asking eight social media and video streaming companies – including Meta, Twitter, TikTok, and YouTube – to explain how they prevent paid commercial advertising that is deceptive or pushes fraudulent products. Last year consumers reportedly lost over $1.2 billion to fraud scams stemming from social media, making such apps the number one contact method for fraudsters. The FTC is also looking to find out how such platforms make it clear to consumers what content is commercial advertising. Samuel Levine, director of the FTC's consumer protection bureau, explains, "Social media has been a gold mine for scammers who tout sham products and other scams that have cost consumers enormously in recent years. This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms." Reuters reports that YouTube has said it has a strict advertising policy and it will work to provide the FTC with the answers it seeks. Snap, another of the eight companies in question, said the same.