UK Watchdog Fines TikTok Over $15 Million for Breach of Data Protection Law, Misuse of Children’s Data

The UK on Tuesday imposed a 12.7-million pound fine on Chinese video app TikTok for a number of breaches of data protection law, including failing to use children’s personal data lawfully. The Information Commissioner’s Office (ICO), the country’s information watchdog estimates that TikTok allowed up to 1.4 million UK children under the age of 13 to use its platform in 2020, despite its own rules not allowing children that age to create an account.

The move follows a UK government move last month to ban TikTok from all government phones amid security concerns around the Chinese-owned social media app.

The ban brought the UK in line with the US, Canada, the European Union (EU) and also India – which has banned TikTok entirely from the country, even as the company strongly denies sharing user data with the Chinese government.

UK data protection law says that organisations that use personal data when offering information services to children under 13 must have consent from their parents or carers.

“There are laws in place to make sure our children are as safe in the digital world as they are in the physical world. TikTok did not abide by those laws,” said John Edwards, UK Information Commissioner.

“TikTok should have known better. TikTok should have done better. Our 12.7 mn pounds fine reflects the serious impact their failures may have had. They did not do enough to check who was using their platform or take sufficient action to remove the underage children that were using their platform,” he said.

TikTok said it is reviewing the decision and its next steps.

According to Edwards, under-13s were inappropriately granted access to the platform, with TikTok collecting and using their personal data. That means that their data may have been used to track them and profile them, potentially delivering “harmful, inappropriate content at their very next scroll”.

TikTok is also accused of failing to carry out adequate checks to identify and remove underage children from its platform. The ICO investigation found that a concern was raised internally with some senior employees about children under 13 using the platform and not being removed. In the ICO’s view, TikTok did not respond adequately.

Giving details of the contraventions, the ICO found that TikTok breached the UK General Data Protection Regulation (UK GDPR) between May 2018 and July 2020 by providing its services to UK children under the age of 13 and processing their personal data without consent or authorisation from their parents or carers.

It also breached UK laws by failing to provide proper information to people using the platform about how their data is collected, used, and shared in a way that is easy to understand.

Without that information, users of the platform, in particular children, were unlikely to be able to make informed choices about whether and how to engage with it and failed to ensure that the personal data belonging to its UK users was processed lawfully, fairly and in a transparent manner.

A TikTok spokesperson told the BBC that its “40,000-strong safety team works around the clock to help keep the platform safe for our community”.

“While we disagree with the ICO’s decision, which relates to May 2018 – July 2020, we are pleased that the fine announced today has been reduced to under half the amount proposed last year. We will continue to review the decision and are considering the next steps,” the spokesperson said.

The watchdog had previously issued the Chinese social media firm with a “notice of intent”, or a precursor to handing down a potential fine, warning TikTok could face a 27 million pound fine for its breaches.

The ICO said that after taking into consideration the representations from TikTok, it had decided not to pursue the provisional finding related to the unlawful use of special category data.


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UK PM Rishi Sunak Revokes Tax Payments for Foreign Crypto Buyers: Details

Rishi Sunak, the Prime Minister of the UK, is actively working on shaping up the crypto sector for the nation with rules and regulations. Going into 2023, foreigners who are using local British crypto exchanges for buying cryptocurrencies will be exempted from paying taxes. In the UK, profits generated out of crypto activities can be taxed 20 percent to 45 percent depending on the tax bracket the churned income falls under. The rule went into effect on January 1, 2023.

The tax break will apply to a non-UK resident using a local exchange to make crypto trades. An investment manager trading on behalf of a non-UK resident will also be given a relief from paying taxes on profits churned out of crypto trading, an official post about the new rule noted.

The former finance minister of the UK, Sunak aims to establish the country as a hub for cryptocurrency and Web3 industries.

“This exemption is an important factor in attracting global investors, meaning foreign investors won’t be brought into UK tax simply by appointing UK-based investment managers,” a Coindesk report quoted UK’s tax arm as saying.

“To build upon the UK’s position as an investment management hub, this exemption has been extended to include crypto assets, so that funds which include them aren’t put off from appointing UK manager.”

Sunak had first announced this rule in December last year and had slated January 1, 2023 as the day that the law would go live.

The British government, that legalised stablecoins last year, is exploring avenues to empower local financial regulators with more authority over the crypto sector.

In June 2022, the UK released a consultation paper outlining laws to mitigate risks associated with stablecoin projects that fail. At the time, the authorities of the UK had decided to grant more control to the Bank of England (BoE) to deal with the issuers of failed stablecoins.

Treasury officials in the UK have been reportedly working with crypto businesses and groups to formulate laws that elevate their performances, and, in return, bring revenues to the country.

In July last year, the UK law commission had proposed amendments in the existing property laws to include cryptocurrencies and other virtual digital assets.


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Deepfakes Sharing to Be Criminalised in UK Under New Online Safety Bill

Under a planned amendment to the UK’s new Online Safety Bill, people who share so-called “deepfakes” — explicit images or videos which have been manipulated to look like someone without their consent — will be among those to be specifically criminalised for the first time and face potential time behind bars.

The UK government said it will also bring forward a package of additional laws to tackle a range of abusive online behaviour including the installation of equipment, such as hidden cameras, to take or record images of someone without their consent.

These will cover so-called “downblousing” – where photos are taken down a woman’s top without consent. The Ministry of Justice (MoJ) said this delivers on British Prime Minister Rishi Sunak’s pledge to criminalise the practice, in line with previous steps taken to outlaw “upskirting” – or filming up a woman’s clothing without consent.

“We must do more to protect women and girls, from people who take or manipulate intimate photos in order to hound or humiliate them,” said UK Deputy Prime Minister and Justice Secretary Dominic Raab.

“Our changes will give police and prosecutors the powers they need to bring these cowards to justice and safeguard women and girls from such vile abuse,” he said.

The amendment to the Online Safety Bill is intended to broaden the scope of current intimate image offences, so that more perpetrators will face prosecution and potentially time in jail.

According to official figures, around one in 14 adults in England and Wales have experienced a threat to share intimate images, with more than 28,000 reports of disclosing private sexual images without consent recorded by police between April 2015 and December 2021.

The latest package of MoJ reforms follows growing global concerns around the abuse of new technology, including the increased prevalence of “deepfakes”.

These typically involve the use of editing software to make and share fake images or videos of a person without their consent, which are often pornographic in nature.

 


 

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Santander UK Limits Crypto Transfers to Exchanges in Bid to Safeguard Customers

Santander UK, the British branch of the Spanish financial giant, has published a new update concerning cryptocurrencies and it warns that investing in such financial vehicles can be “high risk.” The bank notes that the UK’s Financial Conduct Authority (FCA) has warned the public about such risks and the financial institution wants to do everything it can to “protect” customers. “[Santander UK feels] that limiting payments to cryptocurrency exchanges is the best way to make sure your money stays safe,” the bank explains.

As per a Reuters report, the branch is essentially announcing a GBP 1,000 (roughly Rs. 91,720) limit on crypto transactions for customers. The bank also said that customers will be limited to making crypto transactions worth GBP 3,000 (roughly Rs. 2.75 lakh) during a 30-day period.

These restrictions apply to customers making crypto deposits to exchanges from their bank accounts. As such, customers can still withdraw from exchange platforms to their Santander bank accounts. The bank also stated that it will be making more changes to these limits while also adding that it could ban deposits to crypto exchanges altogether.

Despite the bank’s warning, Santander-associated businesses are dedicating lots of effort toward tokenisation, commodity tokens, and cryptocurrency services in Brazil. The Spanish banking giant has also crafted a Bitcoin exchange-traded fund (ETF) in Spain.

Santander UK, however, must operate under the UK’s financial laws and other Santander-associated businesses navigate differently. The notice posted to the bank’s web portal says that customers can still get payments from crypto exchanges into their accounts, but it notes more changes could come in the future.

“We’ll be making more changes to limit or prevent payments to crypto exchanges in the future, though we’ll always let you know before we make these changes,” Santander UK’s update discloses.

The bank also highlights the largest crypto exchange by global trade volume, Binance, in the update. Santander UK has special restrictions when it comes to dealing with Binance. “We’ll continue to stop payments being sent to Binance,” Santander UK says. The bank also shares an FCA warning written about Binance.


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