The Federal Trade Commission is currently conducting an investigation into popular social media platform TikTok regarding its data and security practices. This investigation could potentially result in a settlement or legal action against the company. The FTC is looking into whether TikTok violated federal law by engaging in 'unfair and deceptive' business practices, particularly in relation to denying access to U.S. user data by individuals in China.
Additionally, the agency is examining TikTok for possible violations of the Children’s Online Privacy Protection Act, which mandates that apps and websites targeting children under 13 must obtain parental consent before collecting their personal information.
Both the FTC spokesperson and TikTok have refrained from commenting on the ongoing investigation, which was initially reported by Politico. The investigation is nearing its conclusion, and a potential settlement between the FTC and TikTok could be reached in the coming weeks.
If the FTC decides to pursue legal action instead, the case would be referred to the Justice Department, which would then have 45 days to determine whether to file a lawsuit on behalf of the FTC or make other decisions regarding the case.
This development follows a request made nearly two years ago by Senate Intelligence Committee members for the FTC to investigate TikTok, based on reports that ByteDance employees in China had accessed data on U.S. TikTok users. ByteDance later confirmed that it had terminated four employees who accessed data on journalists from various news outlets.
Legislation that could impact TikTok's operations in the U.S. recently passed in the House of Representatives. However, the bill faces challenges in the Senate due to differing opinions on how to address concerns related to the social media platform.
Lawmakers and intelligence officials have expressed concerns about the potential for TikTok to be exploited by the Chinese government to access U.S. user data or influence American users through its algorithm. Despite these concerns, the U.S. government has not publicly presented evidence of such activities occurring.