In a new development that poses further challenges for TikTok, the Federal Trade Commission (FTC) has initiated an investigation into the popular social media platform's data and security practices. Two sources, speaking on the condition of anonymity, revealed this information to CNN.

The probe comes at a time when TikTok is already grappling with the threat of a potential ban in the United States or a forced divestment from its Chinese parent company. The FTC is specifically looking into alleged violations of the Children's Online Privacy Protection (COPPA) rule by TikTok. This rule mandates companies to obtain parental consent and notify parents before collecting data from users under the age of 13.

In addition to the COPPA violations, the FTC is also examining whether TikTok engaged in "unfair or deceptive" business practices, potentially violating a section of the FTC Act. This investigation revolves around the claim that TikTok misrepresented its data practices and denied that user data could be accessed by individuals in China.

According to one of the sources, the FTC might pursue legal action against TikTok or reach a settlement with the company in the forthcoming weeks. The existence of the probe was initially reported by Politico.

In response to inquiries about the investigation, FTC Director of Public Affairs Douglas Farrar refrained from providing any comment. Meanwhile, TikTok has not yet responded to requests for comment on the matter.

This investigation from the FTC adds to the growing uncertainty surrounding TikTok's future in the United States. Recently, a bipartisan group in the US House of Representatives passed a law that requires TikTok to be sold by its Chinese parent company, ByteDance, or face a ban from US app stores. The bill is currently under review in the Senate, and President Joe Biden has expressed readiness to sign it if it reaches his desk. However, Senate leaders are taking a cautious approach, potentially leading to delays or even derailing the House bill.

TikTok has consistently denied allegations that its app poses a national security threat to US citizens. The company claims that it operates independently from its Chinese parent company and that the Chinese government has never accessed user data from the United States. Nonetheless, experts in cybersecurity assert that Chinese laws oblige ByteDance, as the owner of TikTok, to cooperate with Chinese intelligence demands, raising concerns about the security of US user data.

To address these concerns, TikTok has taken several measures, including storing the data of its US users on cloud servers controlled by US tech giant Oracle. Additionally, the company has established internal protocols to restrict access to user data by non-US employees.

During congressional hearings in 2022, TikTok admitted that employees based in China could access US user data. The acknowledgment followed a report by BuzzFeed News, which revealed that ByteDance employees had accessed this information on multiple occasions. TikTok CEO Shou Chew, in his appearance before Congress last year, also admitted that several employees were terminated for spying on specific US journalists as part of an ill-advised effort to identify leakers within the company.

As TikTok navigates this investigation by the FTC, the outcome remains uncertain. The scrutiny the company is facing underscores the challenges posed by evolving data and security regulations, as well as ongoing concerns regarding the platform's relationship with its Chinese parent company.