Compensation Of US$92 Million! TikTok Reaches Settlement Agreement With US Users

Although TikTok has achieved impressive results overseas, it also faces many challenges.

For example, TikTok was banned in India due to political issues; for another example, TikTok was forced to sell its US business some time ago; previously, TikTok was banned by Pakistan due to immoral/indecent content on the platform.

Not only that, TikTok has also faced another challenge for a long time, which is the issue of user data privacy. Just recently, TikTok paid $92 million for this.

The specific situation is this. According to documents filed in the U.S. District Court in Illinois last week, ByteDance has agreed to a $92 million class action settlement to resolve the data privacy claims of some U.S. TikTok users.

The settlement consolidates 21 class-action lawsuits against TikTok involving various alleged violations of user privacy. For example, TikTok analyzes users’ faces to determine their race, gender and age, tracks user data and targets ads to them, and its transmission of private data violates the Computer Fraud and Abuse Act.

As part of the settlement, TikTok agreed to refrain from several practices that could compromise user privacy, including storing biometric information, collecting GPS or clipboard data, and sending or storing U.S. users’ data abroad.

The settlement follows an internal study of TikTok’s source code by experts and extensive mediation efforts. Notably, nearly all U.S. users will be included in the settlement, which still requires court approval.

In response, a TikTok spokesperson said in a statement: "While we disagree with these claims, we would rather focus our efforts on building a safe and happy experience for the TikTok community than lengthy litigation."

Not only in the United States, TikTok also faces similar tests in Europe. Previously, Yien.com reported that TikTok is facing a new round of regulatory complaints in Europe. Consumer protection organizations have submitted a series of complaints, accusing it of repeatedly violating EU laws, including data protection and privacy issues.

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