The Federal Trade Commission (FTC) is currently conducting an investigation into popular social media platform TikTok over its data and security practices, according to a person familiar with the matter. The probe could potentially result in a settlement or a lawsuit against the company. The FTC is looking into whether TikTok violated federal law by allegedly denying that individuals in China had access to U.S. user data, which would constitute "unfair and deceptive" business practices. Additionally, the agency is examining potential violations of the Children's Online Privacy Protection Act, which requires parental consent before collecting personal information of children under 13.

FTC spokesperson Nicole Drayton and TikTok have both declined to comment on the ongoing investigation, which was first reported by Politico. The agency is reportedly nearing the end of its investigation and could reach a settlement with TikTok in the coming weeks. However, there is no set deadline for an agreement. If the FTC decides to pursue a lawsuit instead, the case would need to be referred to the Justice Department, which would have 45 days to determine its course of action.

This news comes nearly two years after Senate Intelligence Committee Chairman Mark Warner and Senator Marco Rubio urged the FTC to investigate TikTok following reports that ByteDance employees in China had accessed data on U.S. TikTok users. ByteDance later confirmed that it had fired four employees for accessing data on journalists from Buzzfeed News and The Financial Times in an attempt to track down leaks of confidential materials.

Legislation that could potentially ban TikTok in the U.S. was recently approved in the House, but faces challenges in the Senate where there is little consensus on how to address concerns over the platform. Lawmakers and intelligence officials have expressed worries that the Chinese government could potentially access U.S. user data or influence Americans through TikTok's algorithm. However, to date, the U.S. government has not provided public evidence to support these claims.