Sensitive business information from top advertisers like Amazon, Disney, and the New York Times was found to be accessible to staff at both TikTok and its Beijing-based parent company ByteDance, according to internal documents and sources across TikTok. This revelation comes amid growing concerns about data privacy and security issues, particularly in light of TikTok’s ownership by a Chinese entity and the threat of a ban in the United States.
Employees at ByteDance reportedly had access to sensitive data from advertisers, including emails, financial agreements, tax information, customer targeting details, and creative assets. Concerns were raised about how this information was being handled internally, especially with the heightened scrutiny from U.S. authorities over TikTok’s data practices. The situation has led to investigations by federal agencies and the introduction of legislation that could potentially shut down TikTok in the U.S. if ByteDance does not divest itself of the app.
The advertising division within TikTok was described as a chaotic environment where sales employees were under pressure to meet revenue goals, leading some to adopt questionable sales tactics. Sources revealed instances where advertisers’ information was used to pressure rivals to spend more on the platform, raising ethical concerns among employees. TikTok declined to comment on these allegations, while major advertisers like Amazon, Disney, and the New York Times did not respond to requests for comment.
TikTok’s advertising revenue reached an estimated $20 billion last year, with expectations of generating almost $30 billion by the end of this year. Advertisers on TikTok provide sensitive business information to create accounts in an internal tool called “Make More Money,” which was developed by ByteDance. The tool serves as a sales hub for customer onboarding, contracting, billing, and payments, and also provides analytics on ad performance and spending.
Despite efforts to improve privacy and security, issues with access control persisted within TikTok’s advertising tools until at least 2023. The overlap between the U.S. and China interfaces of the Make More Money platform was addressed through a separation in response to escalating U.S. regulatory pressure on TikTok’s Chinese ownership. Nevertheless, concerns remain about the handling of sensitive data and the potential risks of unauthorized access and use of advertisers’ information.
TikTok’s challenges with data privacy and security have been highlighted in various aspects of its operations, including the mishandling of American creators’ information and the exposure of celebrities’ personal contacts to employees around the world. While TikTok has made efforts to address these issues, questions remain about the adequacy of safeguards in place to protect advertisers’ sensitive information. The company has faced scrutiny from regulators and lawmakers over its data practices, prompting calls for increased transparency and accountability in handling user and advertiser data.
