Compensation of $92 million! TikTok reaches a settlement agreement with American users

Although TikTok has achieved impressive results overseas, it also faces many challenges.

For example, TikTok was banned in India due to political issues; for another example, TikTok was forced to sell its US business some time ago; before that, TikTok was banned in Pakistan due to immoral/indecent content on the platform.

Not only that, TikTok has long faced another challenge, which is the issue of user data privacy. Just recently, TikTok paid $92 million for this.

The specific situation is that according to documents filed in the U.S. District Court in Illinois last week , ByteDance has agreed to resolve data privacy claims of some American TikTok users through a $92 million class action settlement .

The settlement consolidates 21 class-action lawsuits against TikTok involving various alleged violations of user privacy, including that TikTok analyzes users' faces to determine their race , gender and age, tracks user data and targets them with targeted ads, and that its transmission of private data violates the Computer Fraud and Abuse Act .

As part of the settlement, TikTok agreed to avoid several practices that could compromise user privacy, including storing biometric information, collecting GPS or clipboard data, and sending or storing U.S. users' data abroad .

The settlement was reached after experts internally studied TikTok's source code and extensive mediation efforts . Notably, almost all U.S. users will be included in the settlement , which still requires court approval .

In response, a TikTok spokesperson said in a statement : " While we disagree with these claims, we would rather focus our energy on building a safe and happy experience for the TikTok community than on lengthy litigation . "

TikTok is facing similar challenges not only in the United States, but also in Europe. Previously, Yien.com reported that TikTok is facing a new round of regulatory complaints in Europe. Consumer protection organizations have submitted a series of complaints accusing it of multiple violations of EU laws, including data protection and privacy issues.

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