TikTok Settles Class Action Data Privacy Lawsuit for $92 Million

Introduction

On November 15, 2021, TikTok users received an in-app notification: “Class Action Settlement Notice: U.S. residents who used TikTok before October 1, 2021, may be eligible for a class settlement payment – visit https://www.TikTokDataPrivacySettlement.com for details.” Although initially met with skepticism, this settlement is a significant development in TikTok's history of data privacy litigation. This new settlement, notable for its $92 million payout, sheds light on the evolving state of data privacy and biometric data law in the United States.

 

 Allegations in the Class Action

The class action, consolidating 21 federal lawsuits, was overseen by the United States District Court for the Northern District of Illinois. The plaintiffs, primarily from Illinois and California, included many minors. The class action was divided into two groups: one covering TikTok users nationwide and the other focusing on Illinois residents.

 

The plaintiffs alleged that TikTok improperly used personal data, including sharing it without consent with third parties, some based in China and others like Google and Facebook. The suit also accused TikTok of unlawfully using facial recognition technology and harvesting data from draft videos that users never posted. Additionally, the plaintiffs claimed that TikTok actively concealed these practices.

 

 Federal and State Law Violations

The plaintiffs alleged violations of several federal and state laws:

 

1. **Computer Fraud and Abuse Act (CFAA):** This act prohibits accessing protected computers without authorization or exceeding authorized access. Plaintiffs claimed TikTok violated the CFAA by secretly transmitting personal data, including biometric identifiers and private videos.

2. **Video Privacy Protection Act (VPPA):** This act was allegedly violated when TikTok shared personally identifiable information, such as viewing history, with Facebook and Google.

 

On the state level, the lawsuit alleged violations of:

 

1. **California Comprehensive Data Access and Fraud Act:** The entire class alleged violations of this act and a violation of the right to privacy under the California Constitution.

2. **Biometric Information Privacy Act (BIPA):** The Illinois subclass alleged that TikTok violated BIPA by collecting biometric information without providing required notice or obtaining written consent.

 

Additionally, the plaintiffs claimed intrusion upon seclusion, unjust enrichment, and violations of California's unfair competition and false advertising laws.

 

 Significance of the Settlement

This $92 million settlement is significant not only for its size but also for highlighting the growing importance of data privacy and biometric data laws. The settlement emphasizes the need for companies to comply with federal and state regulations regarding the collection and use of personal and biometric data. It also serves as a reminder of the legal and financial consequences companies may face if they fail to protect users' privacy.

 

 Conclusion

The TikTok settlement underscores the evolving landscape of data privacy and the increasing scrutiny on companies' data practices. As technology continues to advance, it is crucial for companies to prioritize user privacy and comply with legal standards to avoid similar legal challenges and settlements in the future.

 

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 References

- For more details on the class action settlement, visit [TikTok Data Privacy Settlement](https://www.TikTokDataPrivacySettlement.com).

- Information about the Computer Fraud and Abuse Act (CFAA) can be found [here](https://www.law.cornell.edu/uscode/text/18/1030).

- Details about the Video Privacy Protection Act (VPPA) are available [here](https://www.law.cornell.edu/uscode/text/18/2710).

- Information on the Biometric Information Privacy Act (BIPA) can be found [here](https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3004&ChapterID=57).

 

Read more at: [Law360 Article](https://libpubsdss.lib.umn.edu/mjlst/category/data-privacy/)