TikTok To Pay Up $92 Million To Settle Privacy Issues In Court
TikTok agrees to pay up $92 million as it enters into a class action settlement agreement in order to put an end to its legal battles contending its allegedly illegal data collection practices.
The class action settlement is seen to benefit more than 90 million United States-based users of the video clip-sharing mobile application.
According to online reports, the said agreement will be one of the biggest of its kind as the American public is being more and more mindful of the nuisances that come with data privacy and how companies gather, store, and share these pieces of personal information.
ByteDance, the China-based company behind TikTok, has been charged with more than twenty different class action lawsuits around the country.
The latest settlement, which stemmed from a suit filed in a federal court in Illinois, is seen to help the company quash the remaining legal contentions brought up by the other plaintiffs in their lawsuits.
The TikTok Illinois class action argues that ByteDance, through its app, has broken provisions of the state’s Biometric Information Privacy Act by not providing express prior information that the application collects biometric facial recognition and stores it in their servers.
Under the Illinois state law, it is mandatory for companies to inform beforehand customers about their data management and handling practices and, most importantly, before they gather their identifiable biometric data.
Not only that, TikTok allegedly sent the gathered user data to its servers back in China and in other countries in the globe where its employees at Beijing can readily access them.
The company has also shared its data with other big tech companies such as Google, Facebook, etc.
These companies, along with ByteDance, are currently facing a mountain of legal complaints alleging their abusive and illegal use and collection of personal user data.
Additionally, ByteDance was accused of breaking several federal laws that cover privacy concerns, fraud, and abuse. The company has reiterated that it did not do anything wrong.
As of press time, the settlement is at a pause after the judge hearing the case refused to approve the proposed settlement – pressing for more information about the details of how the settlement would push through.
A follow-up hearing is scheduled for April 6.
Formally known as musical.ly, TikTok is a video-sharing social media platform by Beijing-based entity ByteDance.
Known for its trendy short reels, users of the app can create, share, and discover short reel videos from all over the world through the social media platform’s special algorithm.
Videos on the app vary from lipsyncs, comedic reels to singing and dancing clips – the possibilities of themes and content are endless.
The app found initial success as it was launched worldwide, along with the United States, with users go as young as six years old.
Yet, the app has been accused of abusive practices in its data gathering and storage means, leading the federal government to launch a probe into the company.
ByteDance, TikTok’s parent company, aims to have an overall revenue goal of around $30 billion last year, according to a report by Reuters.
Editor’s Note on TikTok Privacy Class Action Settlement Details:
This feature is published to give you a quick update on the on-going TikTok privacy issue class lawsuit.
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