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The Federal Trade Commission (FTC) is investigating TikTok over potential violations of privacy and security practices, two anonymous sources have told CNN. The probe represents another challenge for the popular social media platform already facing the threat of a possible U.S. ban or forced sale from its Chinese parent company ByteDance.
Sources indicate the FTC is examining whether TikTok breached the Children’s Online Privacy Protection rule by collecting data from users under 13 without parental consent. Investigators are also looking into whether TikTok engaged in “unfair or deceptive” business practices prohibited by the FTC Act when denying that user data could be accessed by individuals in China.
The agency could file suit against TikTok or reach a settlement agreement with the company in the coming weeks, one source states. The FTC declined to comment on the investigation, while TikTok did not immediately respond to a request for comment.
This FTC probe arises as TikTok faces a potential nationwide ban in the United States. Earlier this month, the House passed bipartisan legislation to force ByteDance to divest the app or have it banned from U.S. app stores. The bill awaits Senate action, though President Biden signaled he would sign it into law.
TikTok has denied allegations that its app poses a national security risk to Americans, asserting the Chinese government has never accessed U.S. user data. However, cybersecurity experts warn that Chinese laws could require ByteDance to cooperate with intelligence demands, potentially compromising U.S. data.
To address concerns, TikTok stores American user data with Oracle cloud servers and limits access for non-U.S. employees. Yet, TikTok acknowledged to Congress last year that China-based staff could access U.S. data following reports of ByteDance employees doing so. CEO Shou Zi Chew also confirmed that ByteDance fired employees for improperly tracking U.S. journalists.
As the FTC investigates potential privacy violations and security risks, TikTok simultaneously confronts legislation that could trigger its separation from ByteDance or effectively ban the app nationwide.
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Courtesy : https://www.netinfluencer.com/tiktok-ftc-probe-privacy-security-breaches/