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TikTok Data Privacy Class Action Overview:
- Who: TikTok users.
- Why: TikTok developers allegedly collected both children’s and adults’ private information in violation of Canadian law.
- Where: British Columbia.
TikTok agreed to pay $2 million to resolve allegations that its app violated the privacy rights of users.
The settlement resolves two class action lawsuits in British Columbia, both of which alleged TikTok collected private information from minors and adults alike. This collection allegedly violates British Columbia’s Privacy Act, amongst other Canadian privacy laws.
The first class action lawsuit was filed in November 2019 by a minor child referred to in court documents as A.C. According to the TikTok privacy class action lawsuit, A.C.’s information was collected without her parents’ consent while she was using the app.
A second class action lawsuit was filed in November 2020 by plaintiff Lisa Thomas. Thomas claims that, since at least 2017, TikTok developers collected personal information such as media access control, or MAC, addresses. These addresses identify the wired or wireless network chip in a device and can allegedly be used to track users.
“MAC addresses need to be kept separate from a person’s real name, registered name, physical location and biographical details: Otherwise, the combination of some or all of that information with a MAC address permits the data holder to track and monitor users across a wide spectrum of services, even when users have legitimately attempted to protect their privacy,” Thomas explains in her TikTok class action lawsuit.
TikTok operator ByteDance and other related companies haven’t admitted any wrongdoing but agreed to resolve both of these class action lawsuits with a settlement worth $2 million.
Unlike other settlements which provide cash payments to affected consumers, this TikTok settlement will provide indirect benefits.
After deductions are made from the $2 million settlement fund, the remaining amount will be distributed between the following charities:
- Law Foundation of British Columbia (50 percent)
- Canadian Centre for Child Protection (16.67 percent)
- Kids Help Phone (16.67 percent)
- Boys & Girls Club Canada (16.66 percent)
In his approval judgment, Justice Peter Edelmann found this cy pres distribution was an appropriate indirect benefit for Class Members.
He noted that, if the settlement fund were distributed amongst all Class Members, each TikTok user would receive less than $1.
“I am satisfied that the proposed cy-près distribution of the settlement funds will provide an indirect benefit to class members, and given the overall value of the settlement will also provide an incentive for behaviour modification both by the defendants and other companies who collect similar types of personal information,” Justice Edelmann ruled.
Notice of the settlement was distributed to active TikTok users through an in-app notice Dec. 9, 2021. Notices were also sent via email and publications.
The deadline for exclusion and objection in the settlement was Jan. 14, 2022.
Final approval in the settlement was granted on Feb. 25, 2022.
The TikTok Privacy Class Action Lawsuits are Thomas v. TikTok Inc., et al., Case No. S209073, and A.C. v. musical.ly Inc., et al., Case No. S193384, in the Supreme Court of British Columbia.
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