In May 2021, TikTok agreed to settle a class action lawsuit alleging the company illegally collected and shared user data without consent. The case focused on two main issues:
1) Whether TikTok failed to adequately safeguard the personal information of minors and comply with the Children’s Online Privacy Protection Act.
2) Whether TikTok shared user data, including biometric information, with third parties without informing users or obtaining consent as required by law.
To resolve these claims, TikTok agreed to pay $92 million as part of a proposed class action settlement. The settlement is still awaiting final approval, but if approved, TikTok users who filed valid claims could receive a portion of the settlement fund.
Who is Eligible
To be eligible to receive a settlement check, you must be a member of the Settlement Class. The Settlement Class includes all U.S. users of the Musical.ly and TikTok apps who used the apps prior to September 30, 2021 when they were under the age of 13, as well as their parents and/or legal guardians. Based on the terms of the settlement, only Settlement Class members are eligible to receive a portion of the $92 million settlement fund.
Settlement Details
The proposed settlement was granted preliminary approval on May 9, 2022. Under the terms of the settlement, TikTok will pay $92 million into a settlement fund to compensate users of the TikTok app before September 30, 2021 [1]. This is to resolve allegations that TikTok illegally collected personal data from minors and shared data with third parties without consent.
The settlement class includes all persons in the U.S. who used the TikTok app before September 30, 2021. Eligible class members can submit claims to receive payment from the settlement fund. The settlement establishes a tiered framework for compensation based on the number of valid claims submitted:
- If there are 1,000,000 or more valid claims, each claimant will receive a minimum of $5.
- If there are 5,000,000 or more valid claims, each claimant will receive a minimum of $7.
- If there are fewer than 1,000,000 valid claims, each claimant will receive a minimum of $11.
Any remaining settlement funds after distribution to claimants will be divided and donated to organizations focused on promoting online safety and privacy for minors.
How to File a Claim
There are two options to submit a claim in the TikTok data privacy settlement:
- Online through the settlement website’s claim form.
- By mail sent to: TikTok Data Privacy Settlement, c/o Settlement Administrator, P.O. Box 5082, Portland, OR 97208-5082.
To file online, go to the settlement website’s claim form page and provide your name, email or phone number used for your TikTok account, and your TikTok username or account ID. You will need to certify that you are a member of the settlement class and provide your mailing address so a check can be sent if the claim is approved.
To file by mail, download the claim form from the settlement website. Fill out the form with your name, contact information, TikTok username, and certify you are a member of the settlement class. Then mail the completed form to the settlement administrator at the address above.
Claim forms must be submitted online or postmarked by March 1, 2023. Make sure to keep a record of your claim form and proof of submission or mailing.
Claim Deadline
If you qualify for the TikTok settlement, you must file a claim by March 1, 2022 to receive payment. You can file a claim either online at https://tiktokdataprivacysettlement.com/submit-claim.php or via mail. Mailed claims must be postmarked by March 1, 2022 to be considered valid.
The deadline to file a claim is the same for all class members, regardless of age or any other factors. Missing the March 1 deadline will disqualify you from receiving any settlement benefits.
Payment Amounts
The settlement provides payment tiers based on how active users were on the app. According to the settlement website, the estimated payment amounts are:
- Group 1: For Class Members who used the App most actively, the minimum estimated payment is $385.
- Group 2: For Class Members who used the App less actively, the minimum estimated payment is $96.
- Group 3: For Class Members who used the App least actively, the minimum estimated payment is $7.
The final payment amounts may increase or decrease depending on the number of valid claims filed. If the total value of valid claims exceeds the amount available in the settlement fund, payments will be reduced on a proportional basis.
Payments also depend on whether Class Members are part of the Illinois or Federal class:
- Illinois Subclass: Estimated minimum payments are 1.5x the amounts above.
- Nationwide Class: Estimated minimum payments are the amounts listed above.
For a personalized estimate based on your app usage, you can use the settlement calculator after submitting a claim.
When Payments Will Be Issued
Settlement payments are expected to be issued in phases, with the first round of checks going out by the end of 2022 or early 2023 according to the settlement website (https://www.tiktokdataprivacysettlement.com/). On October 26, 2022, the Settlement Administrator began issuing the initial set of settlement checks to class members.
The settlement was granted final approval by the court on May 18, 2022. However, appeals were filed which delayed the process. After the appeals were resolved, the settlement was given the green light to proceed. Now that the appeals are out of the way, the administrator can start sending out payments (https://www.musicallyclassactionsettlement.com/).
Recipients can expect to receive their settlement checks via mail or direct deposit. The timeline for mailing all the checks is estimated to take 2-3 months from the initial issuance date according to the settlement website. If you filed a valid claim but have not received your check several weeks after the initial rounds go out, you may need to contact the settlement administrator.
The distribution process involves verifying and processing claims, printing and mailing paper checks, and electronically transferring funds for direct deposits. Given the large class size, this comprehensive process takes time to complete. Settlement class members should expect to receive their payments by early 2023 at the latest, if not sooner.
Opting Out of the Settlement
If you do not want to be part of the class action settlement, you can opt out by submitting a written request stating your intent to be excluded. According to the settlement website, your request must include your name, address, phone number, and a statement that you want to be excluded from the settlement. You must mail your exclusion request with a postmark no later than March 1, 2023 to:
TikTok Data Privacy Settlement
Exclusions
P.O. Box 5082
Portland, OR 97208-5082
If you opt out, you will not receive any benefits from the settlement, including compensation. However, you will retain the right to separately pursue your own claims against TikTok if you choose to do so. Make sure to follow the instructions carefully and meet the deadline if you wish to opt out of the settlement.
Objecting to the Settlement
If you are part of the settlement class, you can object to the terms of the settlement if you do not agree with them. According to the settlement website, to object you must submit a written statement to the settlement administrator explaining why you object. Be sure to include your name, address, telephone number, signature, and the reasons why you object to the settlement terms.
According to the instructions on the settlement website, you must mail your written objection to the settlement administrator at this address:
TikTok Data Privacy Settlement
Settlement Administrator
P.O. Box 58220
1500 John F Kennedy Blvd, Suite C31
Philadelphia, PA 19102
The deadline to submit objections is March 1, 2023. Objections received after this date will not be considered by the Court.
When submitting an objection, be sure to clearly state your reasons and provide supporting evidence if available. The Court will take all properly submitted objections into consideration when deciding whether to approve the settlement.
Getting Help
If you need additional information or support filing your claim for the TikTok settlement, there are a few resources available:
The official settlement website at https://www.tiktokdataprivacysettlement.com/ has an FAQ section that provides answers to common questions about eligibility, filing claims, payment amounts, deadlines, and more. You can also contact the settlement administrator by email at [email protected] or by phone at 1-866-304-4226.
For additional help understanding the settlement and your rights, you can contact the class counsel, Hausfeld LLP, by phone at 202-540-7200 or by email at [email protected]. The court has appointed this law firm to represent the class, so they can provide guidance on participating in the settlement.
You can also consult the court documents like the original class action complaint and settlement agreement for more details. These are available on the Public Access to Court Electronic Records (PACER) system at https://www.musicallyclassactionsettlement.com/.
If you need help filling out the claim form, do not hesitate to reach out to the resources above. There are people available to answer questions and provide assistance throughout the claims process.