Tiktok agrees to storing American user data in China: Report

Author:Brayden Lindrea 2023-06-23 02:21 57

TikTok has responded to concerns raised by bipartisan Senate leaders regarding the storage of sensitive information of American creators on servers in China.

U.S. flag and TikTok logo are seen in this illustration taken, June 2, 2023. REUTERS/Dado Ruvic/Illustration(REUTERS)

The company's statement comes after TikTok CEO Shou Zi Chew made "incorrect claims" to Congress about the data storage practices of the popular social media platform. While Chew testified that “American data has always been stored in Virginia and Singapore,” a Forbes investigation revealed that TikTok had stored financial information of prominent American and European creators, including those in the TikTok Creator Fund, on servers located in China.

Senators Richard Blumenthal and Marsha Blackburn demanded clarification on this discrepancy.

In response to the senators' questions, TikTok acknowledged that there is a distinction between "U.S. user data collected by the TikTok app" and the information provided by creators for payment purposes.

The former is stored in TikTok's data centers in the United States and Singapore, while the exact location of the latter was not explicitly disclosed. Internal documents obtained by Forbes and multiple sources within the company indicated that creator data, such as tax forms and social security numbers, had indeed been stored in China. Payments to creators and vendors are managed through tools from ByteDance, TikTok's China-based parent company.

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The content-creative application clarified that its previous testimony to Congress focused on "protected user data collected in the app" and not creator data.

The company stood by the statements made by its executives and emphasized that creator data often falls under certain exceptions. These exceptions, as part of TikTok's negotiations with the Committee on Foreign Investment in the United States (CFIUS), include public data, business metrics, interoperability data, and specific creator data from those participating voluntarily in commercial programs to expand their audience and monetize content.

“We were asked about, and our testimony focused on, the protected user data collected in the app—not creator data…… We stand by the statements made by our company executives to congress,” TikTok wrote in the letter in June 16 response to Sentae leaders.

“We were asked about, and our testimony focused on, the protected user data collected in the app—not creator data.”

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While TikTok believes that the Forbes article referenced creator data collected outside the standard app experience, Senators Blumenthal and Blackburn expressed skepticism and raised concerns about the storage of personal data within reach of the Chinese government.

“TikTok believes that the Forbes article cited in your letter was referencing certain creator data such as signed contracts and related documents for U.S creators who enter into a commercial relationship with TikTok—information that is collected outside of the standard app experience,” the company wrote.

They criticized TikTok for what they perceive as intentional misleading of Congress and reiterated their worry that Americans' data remains exposed to potential spying efforts by Beijing. Their concerns align with those of other congressional leaders, including Senate Intelligence Committee Vice Chairman Marco Rubio, who requested a Department of Justice investigation into whether TikTok's CEO committed perjury during his testimony.

Regarding investigations into the sharing of TikTok Creator Fund data with Chinese officials, TikTok stated that it had not been asked for such data by the Chinese government or the Chinese Communist Party (CCP), nor had it provided any such data. As for data stored in China, TikTok confirmed that deletion was underway for "protected data," but this did not extend to personal information submitted by top creators for payment.

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The response from TikTok has not fully assuaged the concerns of Senate leaders, who remain skeptical of the company's claims. They argue that Americans' data is still vulnerable to Chinese government surveillance, despite TikTok's public relations campaign suggesting otherwise. With calls for investigations into potential perjury and continued scrutiny of TikTok's data practices, the debate over data privacy and security in the context of TikTok's operations is far from over.

SOURCE: Forbes

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Title:Tiktok agrees to storing American user data in China: Report

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