Chinese selfie app Meitu is in trouble over alleged data privacy breaches, with the countryโ€™s consumer watchdog giving the company a strong rap on the knuckles.

In a report (in Chinese) released on November 28, the China Consumer Association (CCA) accused 100 apps investigated for privacy breach risks. Hong Kong-listed Meitu had violated user privacy by โ€œexcessively collecting recognizable bio dataโ€ and โ€œ[user] financial information.โ€

CCA also accuses Meitu for failing to clarify how Meituโ€™s third-party partners would process acquired data.

CCAโ€™s singling out of Meitu is part of a broader push by the association to scrutinize more closely iOS and Android appsโ€™ ability to protect user data.

Meitu told TechNode that the company has started an internal investigation following CCAโ€™s accusations. The company promises to improve data collection transparency, and will clarify data protection responsibilities when collaborating with third parties.

This is not Meituโ€™s first data protection violation. In 2017, information security researchers accused the company of collecting information including user location and carrier details.

As of the end of second quarter of 2018 , Meitu had 242.6 million active users in China and 107.2 million users overseas.

The companyโ€™s data collection activities are widely seen as feeding Meituโ€™s facial recognition technology development. In August, MTlab, Meituโ€™s R&D affiliate for deep learning, computer vision, and computer graphics, won the first prize in International Skin Imaging Collaboration Challenge, a dermatology competition relied on AI. Other participants include Tencent and Lenovo.

Meituโ€™s stock plunged about 16% on November 29. Prior to this, on November 19, Meitu released a profit warning that predicted a net loss between RMB 950 million (around $137 million) and RMB 1.2 billion for 2018.

Clarification: This article has been updated to clarify that Meitu is one of the 100 apps accused by CCA. 

Runhua Zhao is a technology reporter based in Beijing. Connect with her via email: runhuazhao@ovau.ip-ddns.com

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