TikTok under investigation by FTC over data practices

NEW YORK — The Federal Trade Commission is investigating TikTok over its data and security practices, a probe that could lead to a settlement or a 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 fighting against a federal bill that could ban the platform in the United States if it doesn’t break ties with its Beijing-based parent company, ByteDance.

In its investigation, the FTC has been looking into whether TikTok violated a portion of federal law that prohibits “unfair and deceptive” business practices by denying that individuals in China had access to US user data, said the person, who is not authorized to discuss the investigation.

The agency also is scrutinizing the company over potential violations of the Children’s Online Privacy Protection Act, which requires kid-oriented apps and websites to get parents’ consent before collecting personal information of children under 13.

FTC spokesperson Nicole Drayton and TikTok declined to comment on the probe, which was first reported by Politico.

The agency is nearing the conclusion of its investigation and could settle with TikTok in the coming weeks. But there’s not a deadline for an agreement, the person said.

If the FTC moves forward with a lawsuit instead, it would have to refer the case to the Justice Department, which would have 45 days to decide whether it wants to file a case on the FTC’s behalf, make changes, or send it back to the agency to pursue on its own.