U.S. Judge Questions Part of TikTok's $400 Million Privacy Settlement
A U.S. federal judge has signaled his intent to reject part of a proposed $400 million privacy settlement between TikTok, its parent company ByteDance, and the Justice Department. The deal was meant to resolve allegations that TikTok violated children's online privacy laws by collecting personal data without parental consent from users under 13. Judge George H. Wu in Los Angeles expressed concerns about ending a 2019 FTC consent decree tied to TikTok’s predecessor, Musical.ly. He stated the court could not confirm whether terminating the decree would provide a durable solution or be appropriately tailored to current circumstances. The settlement includes an immediate $300 million payment and up to another $100 million if the court approves ending the 2019 agreement. The Justice Department filed its lawsuit in 2024, citing significant changes at TikTok since then, including ownership structure and privacy practices. In January, ByteDance announced a joint venture with U.S.-based partners to safeguard user data and avoid potential regulatory bans.
Topics: ByteDance children's privacy privacy laws settlement TikTok U.S. Justice Department