- TikTok parent ByteDance Ltd has agreed to pay $92 million towards the settlement of the class-action lawsuit for alleged user data collection by TikTok, the Wall Street Journal reports.
- The settlement marks the closure of a long dispute in the U.S. District Court for the Northern District of Illinois over the illegal collection of teenage user data, including face scans to drive a recommendation engine.
- However, the settlement is subject to court approval which could take months to complete.
- The lawsuit was triggered by 21 separate class-action complaints representing young users last year in California and Illinois.
- The plaintiffs’ attorneys, who represented users as young as eight years old, alleged TikTok’s secretive collection of biometric data to refine its targeted advertising and content recommendations.
- Such unpermitted data collection may lead to severe penalties under Illinois’ biometric privacy law. Last year, Facebook Inc (NASDAQ: FB) agreed to pay $650 million to settle a case under the ruling.
- The plaintiffs’ attorneys also alleged user data storage in China, possibly exposing it to government scrutiny.
- TikTok denied the allegations. It has previously denied biometric data collection, including face scans and user data sharing with Beijing.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in