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⚖️ FTC and Justice Department Sue TikTok

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The U.S. Federal Trade Commission (FTC) and the Justice Department are suing TikTok and its parent company, ByteDance, for violating the Children’s Online Privacy Protection Act (COPPA). COPPA mandates that digital platforms notify and obtain parental consent before collecting personal data from children under 13. The FTC alleges that TikTok knowingly allowed millions of underage users on its platform without proper consent, even after a 2019 settlement over similar violations. TikTok reportedly maintained and used underage users’ data for ad targeting and made it difficult for parents to delete their children's accounts. Despite TikTok's claims of addressing these issues, the FTC and Justice Department seek civil penalties up to $51,744 per violation per day and a permanent injunction against future violations.

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Practical Information - AI

Artificial Intelligence (AI) is transforming industries and societies at an unprecedented pace, necessitating robust regulatory frameworks. Staying updated on AI regulations is crucial for businesses, policymakers, and individuals for several reasons: ensuring legal compliance to avoid penalties and reputational damage, promoting ethical AI development by addressing bias and transparency, enhancing competitive advantage through proactive adaptation, mitigating risks and liabilities associated with AI systems, fostering innovation by providing clear guidelines, and protecting public interest by ensuring responsible AI use. As AI evolves, staying informed and adaptable will be essential to navigate its challenges and opportunities effectively.

AI systems often rely on large datasets, which may contain personal information. Founders must ensure compliance with data privacy regulations, including:

  • General Data Protection Regulation (GDPR): Applicable to companies processing personal data of individuals in the EU. It requires clear consent, data protection measures, and rights for individuals over their data.

  • California Consumer Privacy Act (CCPA): Provides similar protections for California residents, including the right to know, delete, and opt-out of the sale of personal data.

  • Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA): Governs how private sector organizations collect, use, and disclose personal information in the course of commercial business.

Being aware of privacy laws is necessary for AI technology to thrive at your startup.

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