NEW YORK — The Federal Trade Commission is investigating TikTok over its data and security practices, an investigation that could lead to a settlement or lawsuit against the company, according to a person familiar with the matter.
The investigation is the latest battle in Washington for the social media company, which is already battling a federal bill that could ban the platform in the U.S. if it does not cut ties with Beijing-based parent company ByteDance.
In its investigation, the FTC examined whether TikTok violated a section of federal law banning “unfair and deceptive” business practices by denying that individuals in China had access to U.S. user data, said the person, who was not authorized to speak the research.
The agency is also investigating the company for possible violations of the Children’s Online Privacy Protection Act, which requires child-targeted apps and websites to obtain parental consent before collecting personal information from children under 13.
FTC spokesperson Nicole Drayton and TikTok declined to comment on the investigation, which was first reported by Politico.
The agency is nearing the conclusion of its investigation and could reach a settlement with TikTok in the coming weeks. But there is no deadline for an agreement, the person said.
If the FTC were to sue instead, it would have to refer the case to the Justice Department, which would have 45 days to decide whether to file a case, make changes, or withdraw it on behalf of the FTC send to the FTC. to pursue on their own.
The news comes nearly two years after Senate Intelligence Committee Chairman Mark Warner and Marco Rubio, the top Republican on the committee, urged FTC Chair Lina Khan to investigate TikTok, citing a report from Buzzfeed News that said ByteDance employees in China have repeatedly accessed data about American TikTok users.
In late 2022, ByteDance said it fired four employees who accessed data on journalists from Buzzfeed News and The Financial Times while trying to track leaks of confidential material about the company.
Legislation that could determine the fate of TikTok in the US was approved in the House of Representatives this month. But the bill is already facing obstacles in the Senate, where there is little unanimity on how best to address concerns about the social platform.
Lawmakers and intelligence officials have said they worry the platform could be used by the Chinese government to access U.S. user data or influence Americans through its popular algorithm. To date, the US government has provided no public evidence that this has happened.