TikTok users in US may be eligible to collect cash from $92M settlement

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United States TikTok users could be eligible to receive funds from a $92 million class action data privacy settlement.

"While we disagree with the assertions, we are pleased to have reached a settlement agreement that allows us to move forward and continue building a safe and joyful experience for the TikTok community," a TikTok spokesperson told Insider of the settlement. 

ByteDance Ltd., the Chinese owner of popular short-video app TikTok, put on hold indefinitely its intentions to list offshore earlier this year after government officials told the company to focus on addressing data-security risks, people familiar wi

The settlement comes after 21 federal lawsuits were filed mostly on the behalf of minors earlier this year. Plaintiffs alleged in court documents filed in the United States District Court for the Northern District of Illinois that the tech platform violated state and federal laws by transmitting "private legally protected data." The lawsuit also alleged that TikTok "extracts a broad array of private data" that the company uses to "track and profile TikTok users" for ads. 

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Lawyers alleged in an amended class action suit, which NPR published, that TikTok collected information from users’ unpublished videos. 

FILE – This Monday, Sept. 28, 2020, file photo, shows the TikTok logo on a smartphone in Tokyo. The Chinese government has made investments in two of the nation’s most significant technology firms: ByteDance, the Chinese company that owns global vide (AP Photo/Kiichiro Sato, File / AP Newsroom)

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TikTok has now agreed to not use its app to collect or store biometric information unless explicitly disclosed in its privacy policy, Insider reported. It also agreed to not collect geolocation data. 

Additionally, it will delete all drafts of posts that were never actually uploaded and to not use such data in the future. 

TikTok users who joined the popular video app prior to Oct. 1 and are U.S. citizens could be eligible for payment. The tech company alerted users to the settlement on Monday via an in-app notification and link on the matter.

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The settlement applies to about 89 million TikTok users in the U.S., Insider reported. Eligible TikTok users must file a claim by March 1, 2022 to qualify for possible payment.

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