The Federal Trade Commission has launched an investigation into TikTok's data and security procedures, two individuals told CNN on the condition of anonymity.
The investigation adds to the social media platform's already difficult situation, which includes the possibility of a US ban or forced divestiture from its Chinese parent firm.
According to reports, the FTC is investigating TikTok for potential violations of the Children's Online Privacy Protection Rule, which requires corporations to notify parents and acquire consent before collecting data from children under the age of 13.
According to the sources, the agency is also looking into whether TikTok violated a provision of the FTC Act that forbids "unfair or deceptive" business practices by denying that TikTok user data may be accessible by people in China.
According to one of the sources, the FTC may file a lawsuit against TikTok or reach an agreement with the firm over the next few weeks. Politico reported on the investigation previously.
When contacted about the probe, FTC Director of Public Affairs Douglas Farrar said, "No comment."
TikTok did not immediately reply to a request for a comment.
The FTC investigation comes as TikTok confronts an existential threat in the US. Earlier this month, a bipartisan coalition in the US House of Representatives voted to adopt legislation requiring TikTok to be sold by ByteDance or risk a ban in US app shops. The bill is currently before the Senate, and President Joe Biden has stated he will sign it if it reaches his desk. Senate leaders, on the other hand, have signaled that they are adopting a cautious approach, which may result in delays or perhaps the failure of the House plan.
The short-form video company, controlled by Chinese corporation ByteDance, has refuted allegations that its app poses a national security risk to US residents. TikTok, which does not operate in China, claims that the Chinese government has never obtained US customer data.