TikTok parent company ByteDance has agreed to a $ 92 million deal to file lawsuits alleging that the company illegally collected and used the personal data of underage TikTok users.
The proposed settlement (PDF) requires TikTok to pay out up to $ 92 million to class members and change some of the processes and disclosure of its data collection.
The case, which brought together more than 20 related lawsuits, mostly on behalf of minors, alleges that TikTok violated state and federal privacy laws, including the Computer Fraud and Abuse Act and the Video Protection Act, by using data.
TikTok uses ‘automated software, proprietary algorithms, AI, facial recognition and other technologies to take commercial advantage’ of its users, the complaint claims (PDF). The data that TikTok allegedly collects, shares and uses for machine learning training goes surprisingly deep, the pack has been added, including users’ identities, unique identifying information, biometric data and information, images, video and digital recordings, audio recordings, clipboard data. , geolocation, names, email addresses, passwords, social media accounts, messaging services, telephone numbers and other private, non-public or confidential data and information. “
In addition, the case raised concerns that privately and personally identifiable user data collected by TikTok could be shared with Chinese government enterprises, reflecting the concerns of the Trump administration in its failed attempts to make TikTok work in the US.
TikTok denies any specific violation. “While we do not agree with the allegations, rather than pursuing protracted litigation, we want to focus our efforts on building a safe and joyful experience for the TikTok community,” the company said in a statement.
Money for taking – unless everyone asks
Lawyers representing the plaintiffs cite the settlement as “one of the largest ever reached” in such a case. Insofar as their statement is true, it is far more damning to US privacy law than to compliment it in this particular case.
The total class, as defined in the settlement, contains 89 million American users. The lawyers are asking for a collective payment “that will not exceed 33.33% of the settlement fund”, leaving the class members with $ 61 million. On top of that, however, the proposed deal is structured so that each member of the ‘national’ class can claim a share, and Illinois users can claim six shares.
TikTok identified 1.4 million users who would qualify in the Illinois subclass, leaving behind approximately 87.6 million other class members nationwide. According to the settlement, each qualified member of the class would file a claim, most users could expect to harvest about $ 0.96, and Illinois users could get as much as $ 5.75.
In the filing, however, attorneys make it clear that they do not expect a high percentage of the class to file claims, but rather the possible payouts for hypothetical claims of 1.5 percent ($ 383.33 for Illinois, $ 63, 89 for all) to 20 percent ($ 28.75). for Illinois, $ 4.79 for everyone else) of the class.
Of course, money is not everything; Lawsuits like this class action lawsuit also often call for drugs – that is, the company no longer has to do the bad thing. This agreement is no different. Under the proposed conditions, TikTok will implement a “data privacy statement training initiative” to instruct employees and contractors to comply with privacy legislation.
With regard to the collection, storage and use of sensitive data, TikTok does not agree that it will discontinue those activities, but rather that it will update its privacy policy to ensure that the activities are more clearly disclosed “and in accordance with all applicable laws. “
A judge will have to approve the proposed settlement before it takes effect; the process is expected to take several months.