TikTok is facing another setback after the Federal Trade Commission (FTC) reportedly launched a probe into the social media platform's data and security practices.

Two anonymous individuals told CNN that TikTok is under investigation by the FTC aside from the possibility of a ban in the United States or forced divestiture from its Chinese parent firm ByteDance.

TikTok Violating the Children's Privacy Law?

The investigation is reportedly underway due to concerns that the company has failed to comply with the Children's Online Privacy Protection Act (COPPA), which mandates companies to inform parents and get their permission before collecting personal information from children under 13 years old.

According to the sources, the FTC is also investigating whether TikTok violated the FTC Act's prohibition of "unfair or deceptive" business practices by denying that TikTok user data could be accessed by individuals in China.

One of the sources noted that the FTC could file a lawsuit against TikTok or settle with the firm in the coming weeks. ByteDance has refuted claims that its short-form video-sharing app poses a national security threat to US citizens. The company stressed that no Chinese government has accessed TikTok's US user data.

Cybersecurity Concerns

Cybersecurity experts said that given ByteDance's ownership of TikTok, the potential exposure of US user data might be a concern. Apparently, the company is obligated by Chinese law to comply with the intelligence needs of that government.

In response, TikTok has instituted internal measures restricting access by non-US personnel and moving its US customer data to cloud servers owned by US tech giant Oracle.

In 2022, after BuzzFeed News reported that ByteDance personnel had accessed US user data many times, TikTok admitted to Congress that Chinese employees could access US user data.

In his initial appearance before Congress last year, TikTok CEO Shou Chew also admitted that several ByteDance staff were let go for spying on specific US journalists as part of a "misguided attempt" to find leakers within the firm.

Read Also: Kamala Harris Says Biden Admin Does 'Not Intend to Ban TikTok' Despite Backing Bill That Could Get the App Banned in US

TikTok Potential Ban in US 

The FTC investigation came days after a bill seeking to ban TikTok in the US passed in the House with a significant majority vote.

The bill aims to restrict "foreign adversary controlled applications," like TikTok, and "any successor application or service and any other application or service developed or provided by ByteDance Ltd. or an entity under the control of ByteDance Ltd." 

If passed, TikTok would be required to cut ties with its Chinese parent company within six months or face being banned from apps and web hosting sites across the US if ByteDance does not sell the app.

Many lawmakers are concerned that the app jeopardizes national security related to data collection and can be used to spread propaganda or influence elections. The bill is currently stalled in the Senate.

Read More: TikTok Chinese Owner ByteDance's Researcher Mistakenly Added to American AI Safety Group Chat, US Standards Body Says