TikTok, which is already fighting legislation that could ban the app in the U.S., could also soon be targeted by the Federal Trade Commission. The FTC is nearing the end of a multi-year investigation into the company, which could result in lawsuits or hefty fines. Politico .
The investigation reportedly focuses on the app’s privacy and security practices, including its handling of child user data. According to Politico, the FTC is investigating possible violations of the Children’s Online Privacy Protection Act (COPPA) and “allegations that the company misled users by falsely stating that individuals in China did not have access to U.S. user data.” TikTok could also face penalties for breaching the regulator’s 2019 terms on data privacy.
It’s unclear whether the FTC’s investigation will lead to lawsuits or other actions, but it is another source of pressure for the company as it tries to secure its future in its biggest market. After quick passage in the House, the Senate bill would force TikTok’s parent company, ByteDance, to sell the app or face an outright ban in the United States. The Biden administration’s attempt to pressure ByteDance into selling TikTok is also a move, and U.S. intelligence officials are grilling lawmakers over alleged national security risks posed by the app.
TikTok did not immediately respond to a request for comment.