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TikTok, which is currently fighting a proposed law that could lead to the app being banned in the US, may soon find itself in the crosshairs of the US Federal Trade Commission (FTC). According to Politico's news; The FTC is close to wrapping up a multi-year investigation into the company that could result in lawsuits or large fines.
The investigation is said to focus on the app's privacy and security practices, including its handling of children's user data. According to Politico's news; The FTC is scrutinizing potential violations of the Children's Online Privacy Protection Act (COPPA). It is also being examined whether the statement that the Chinese do not have access to American users' data is misleading.
TikTok could also be penalized for violating the terms of a 2019 agreement with regulators over data privacy.
It's unclear whether the FTC's investigation will result in a lawsuit or other action. But the investigation is another source of pressure for the company as it tries to secure its future in its largest market.
TikTok faces ban in the US
The bill, which would force TikTok's parent company ByteDance to sell the app or face an outright ban in the US, is now being considered by the Senate after being quickly passed in the House of Representatives. The Biden Administration, which has been trying to pressure ByteDance to divest TikTok, also supports the measure. US intelligence officials also informed senators about the alleged national security risks posed by the application.
TikTok has not yet made a statement regarding this new claim.