Tuesday, May 28

TikTok Agrees to Pay $92 Million to Settle Lawsuit Alleging Data Theft

CHICAGO, 3rd March 2021– US-based law firms will receive a $92 million proposed class action settlement on behalf of users of the TikTok app.

The settlement, if approved by the court, would resolve claims that the social media company wrongfully collected its users’ biometric information and private data, and disclosed that information to third parties.

In addition to creating a monetary fund for TikTok users, the settlement requires that TikTok initiate a new privacy compliance training program and take other steps to protect its users’ privacy going forward.

TikTok is a video-sharing social network that has denied any privacy violations, the class action lawsuit contended that the app collects and discloses personal data in violation of the Illinois Biometric Information Privacy Act (BIPA), the Video Privacy Protection Act, and other consumer and privacy protection laws.

Illinois is currently the only state in the country with a statute that allows consumers to seek monetary damages if their biometric information is wrongfully taken. Because of this important, Illinois-specific claim, the settlement proposes that each Illinois class member receive an additional five shares of the $92 million settlement fund compared to other class members nationwide.

Co-lead counsel Katrina Carroll emphasized that the settlement’s benefits go beyond the millions of dollars that will be distributed to TikTok users nationwide, “This settlement is important for many reasons. First, it provides compensation for TikTok users, but equally as important, it ensures TikTok will respect its users’ privacy going forward. Social media seems so innocuous, but troubling data collection, storage, and disclosure can happen behind the scenes. This settlement sets out to prevent that.”

“It’s clear that Illinois is on the cutting edge of privacy law, and this settlement enforces those crucial protections,” said co-lead counsel Beth Fegan, of FeganScott. “Biometric information is among the most sensitive of private information because it’s unique and it’s permanent. Users’ data follows them everywhere, and potentially for a lifetime. It’s critical that their privacy and identity is protected by stalwart governance to guard against underhanded attempts at theft.”

“This is one of the largest settlements ever achieved in a consumer BIPA case, and one of the largest privacy class action settlements,” noted co-lead counsel Ekwan Rhow. “It presents an excellent recovery for the class, and it serves as a reminder to corporations that privacy matters and they will be held accountable for violating consumers’ rights.”

Once approved, class members will receive information about how to participate in the settlement.