In 2021, TikTok settled a class action lawsuit over allegations that the video-sharing app violated state and federal laws by collecting personal data from users under the age of 13 without parental consent. The lawsuit claimed that TikTok unlawfully took users’ biometric identifiers and private information without proper notice or consent.
The proposed settlement was granted preliminary approval in February 2022 and established a $92 million fund to pay class members who file valid claims, as well as cover legal fees. If the settlement receives final approval, TikTok users who filed valid claims could get payments ranging from $5 to $1000 depending on the extent of their TikTok use and whether they uploaded videos. The final approval hearing is scheduled for November 2022.
Sources:
Home | Musical.ly and/or TikTok Class Action
Tik Tok’s $92 million settlement, limiting what companies …
Who is Eligible for Payment
According to the official TikTok data privacy settlement website (https://www.tiktokdataprivacysettlement.com/) and the claim form (https://tiktokdataprivacysettlement.com/submit-claim.php), U.S. TikTok users who used the app before September 30, 2021 are eligible for payment from the $92 million class action settlement.
To qualify, you must have:
- Used the TikTok app in the U.S. while residing in the state of Illinois
- Created videos for the app before September 30, 2021
The settlement covers claims that TikTok violated Illinois biometric privacy laws by collecting user data like face geometry without consent. So the exact eligibility criteria requires having an account, using it in Illinois, and creating videos specifically. Just having an account or using TikTok in other states does not qualify you for payment.
How Much Money Can I Get
The amount of money you can get from the settlement depends on how active you were on TikTok.
For light TikTok users, who seldom posted videos or engaged with content, the estimated payout is around $5. These users would have spent little time on the app and have limited data collected.
For medium TikTok users, who posted occasionally and engaged with some content, the estimated payout is around $15. These users were moderately active on the app and have more data collected.
For heavy TikTok users, who posted and viewed videos regularly, the estimated payout is around $25-$30. These very active users spent significant time on the app and have substantial data collected on them.
Overall, the more active you were on TikTok and the more data generated from your usage, the higher your potential payout amount in the settlement.
How to File a Claim
To file a claim in the TikTok data privacy settlement, you must submit either an online or mail-in claim form. The deadline for filing a claim is March 1, 2023. Required information includes your email address or phone number associated with your Musical.ly and/or TikTok account, along with your full name, mailing address, birthday, and the phone you used for your account (if you remember it).
To file online, go to https://www.tiktokdataprivacysettlement.com/ and click on “File a Claim.” You’ll need to provide your email address or phone number associated with your account and verify your identity. Follow the instructions to complete and submit the online claim form.
To file by mail, download the claim form from https://www.tiktokdataprivacysettlement.com/ and mail it to: TikTok Data Privacy Settlement, c/o Settlement Administrator, PO Box 6006, Portland, OR 97208-6006. The claim form must be postmarked by March 1, 2023.
When Will I Get My Payment?
The timeline for review and approval of claims is as follows:
- October 2021 – Claims submission period begins
- March 1, 2022 – Claims submission deadline
- March-April 2022 – Claims review period
- May 2022 – Any objections to claims determinations due
- June 2022 – Final approval hearing
Settlement payments will be issued to eligible claimants after final court approval, which is expected by July 2022. Payments will be made either by PayPal or check and mailed to the address provided in your claim submission. The settlement administrator expects all payments to be issued by fall 2022 at the latest.
For the most up-to-date timeline and payment details, please check the official settlement website at https://www.tiktokdataprivacysettlement.com/.
What Does the Settlement Provide
In addition to the cash payouts, the settlement provides other provisions including:
TikTok will take reasonable steps to avoid the collection or retention of biometric identifiers or information for users under the age of 13 (according to Tiktok Settlement).
TikTok will make changes to disclosures and consent flows to provide users with more information on how their biometric data is used (according to Tik Tok’s $92 million settlement, limiting what companies can do with your data). This includes clearer information on the company’s practices during account creation and edit flows.
TikTok will implement a retention schedule for biometric data collected in Illinois, ensuring it is deleted within a set timeframe after initial collection (according to Tiktok Settlement).
The company will direct its engineers to minimize the collection and retention of biometric data to what is strictly needed for authorized and legal purposes (according to New Privacy Lawsuits Hit TikTok: ‘They’re Collecting and Building a Database’).
What Did the Lawsuit Claim
The lawsuits brought against TikTok allege that the company engaged in unlawful data collection practices and violated consumer protection laws. Specifically, TikTok is accused of collecting large amounts of personal data from users, including biometric data, without proper consent.
In January 2024, the state of Iowa sued TikTok for allegedly misleading parents about inappropriate content and illegal data collection practices aimed at children (1). The lawsuit claims TikTok violated Iowa’s consumer fraud act by not disclosing the full extent of its data collection to users.
Similarly, in October 2023, the state of Utah filed a lawsuit accusing TikTok of “luring children into addiction” by collecting data on their interests and usage patterns to keep them on the app longer (2). The lawsuit alleges TikTok captures biometric identifiers like faceprints without consent in order to feed content to users that keeps them engaged.
These lawsuits argue that TikTok’s data collection practices are unethical, violate consumer protection laws, and take advantage of vulnerable audiences like children without proper consent.
Sources:
(1) https://www.reuters.com/legal/iowa-sues-tiktok-misleading-parents-about-inappropriate-content-2024-01-17/
(2) https://governor.utah.gov/2023/10/10/utah-sues-tiktok-over-child-addiction-harm-targets-enmeshment-with-its-china-based-parent-company/
TikTok’s Response
TikTok has denied the allegations in the lawsuits, saying that the company takes privacy seriously and that the claims are without merit.
In a statement to CNN, a TikTok spokesperson said “The same year this allegation was first made, we admitted that we had fallen short in our early days” but that the company is now “far removed from our beginnings” and is committed to “minimizing data access across regions”.
TikTok said the concerns raised were based on outdated policies, and did not reflect current practices. They emphasized that TikTok users have control over their data through privacy settings, and that Chinese government officials do not access TikTok user data.
In response to the specific allegations in the Utah lawsuit, TikTok told The Deseret News that their security practices are comparable or better than major US technology firms and they store American user data in the US with backups in Singapore.
Criticism of the Settlement
Many critics have argued that the settlement amount is insufficient compared to the scale of TikTok and the number of users affected. While the $92 million settlement may seem large, if divided among the 89 million class members in the US who submitted claims, it amounts to only about $1 per person (source1). Several consumer advocacy groups have objected to the settlement terms, saying the compensation is “paltry” for the alleged privacy violations (source2).
There is also criticism that too much of the settlement money is going to legal fees rather than to consumers. Plaintiffs’ lawyers may receive up to one-third of the settlement amount, or $30 million, leaving far less for class members. Some argue this is excessive given the limited benefits to users (source3).
Additionally, TikTok admitted no wrongdoing as part of the settlement. Some argue this allows TikTok to avoid taking responsibility and changing their data practices. The settlement also prevents class members from suing TikTok over the same issues in the future, which critics say lets the company off the hook too easily (source2).
Overall, many contend that the settlement is a poor outcome for users whose privacy and biometric data was allegedly violated. While TikTok gains broad legal protections, critics say individual consumers receive limited compensation and meaningful reforms to data practices are lacking (source1, source3). The scale of the settlement relative to TikTok’s size and profits has provoked backlash and perceptions that justice was not adequately served.
Sources:
3. https://www.tokenex.com/blog/ab-tiktok-data-privacy-settlement-what-happened/
Conclusion
In summary, TikTok has agreed to pay $92 million as part of a class action settlement over claims that the app illegally collected users’ personal data and shared it with third parties. While the settlement provides some compensation to TikTok users, the amount each person receives is likely to be small, with estimated payouts between $5-$20. This settlement underscores ongoing concerns around TikTok’s data privacy practices, although the company denies any wrongdoing.
For TikTok users, this settlement provides confirmation that their personal data was collected and used without proper disclosure. While TikTok says it has made changes to better protect user privacy, many concerns remain. This settlement serves as a reminder to be thoughtful about what information you share on the app and to utilize available privacy settings. Moving forward, TikTok users should stay informed on the app’s data practices and understand their options to control how their personal information is collected and shared.
