TikTok to Settle $92M Lawsuit After Being Accused of Collecting User Data, Private Information

TikTok has been called by the court for an alleged breach of User's data privacy after reports and discoveries saying that it has been collecting information from billions of users on its past processes. The social media platform has been operating in the country despite the initial, previous threat of its shutdown, and has now agreed to settle for $92 million.

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BERLIN, GERMANY - SEPTEMBER 21: A young man holding a smartphone casts a shadow as he walks past an advertisement for social media company TikTok on September 21, 2020 in Berlin, Germany. U.S. President Donald Trump has given preliminary approval for Oracle, Walmart and other investors to take over TikTok and create a new U.S.-based company called TikTok Global. Photo by Sean Gallup/Getty Images

No muss, no fuss, TikTok would settle the allegations for $92 million and has prevented a long and grueling probe on their functions and operations in the country after the initial discovery of a breach in user privacy. The settlement comes directly from TikTok, which would avoid the lengthy prosecution of the courts, and dragging out different lights on their name.

Initially, ByteDance was allegedly found to have connections to the Chinese military, along with being China's spy on US Citizens as its services have been growing in the country. These allegations have led to a supposed TikTok ban and a sale to a United States-founded company, to control the rights and operation in the country.

TikTok Settles $92M for Alleged Data Privacy Breach

 Tiktok
Photo by Solen Feyissa on Unsplash

According to CNet, the courts have not yet approved TikTok's proposition to the lawsuit, which has resulted in a settlement instead of playing it out on the court for a lengthy trial process. Moreover, the company denies all the allegations and claims that were made by the US courts, saying that it collected and breached sensitive and private files.

Moreover, the lawsuit brought another shade on TikTok, saying that the short word social media has been selling this collected and breached information to third-party figures who are interested in user data. The money that would be settled by TikTok would go to users once it is approved by the court, and would be distributed for damages.

If the settlement pushes through and gets approval, TikTok would have dodged a bullet, especially as the lawsuit would require the company to revamp its user data and privacy policy to comply with the terms. Moreover, the company is sought after by several law firms in the country, in which all parties have agreed to the settlement movement.

TikTok's US Presence Continues

The previous administration has not succeeded in pushing TikTok for a US company sale, but that does not mean that the short video social networking app is off the hook for this lawsuit.

The prohibitions may have changed and eased up on TikTok, but the chapter is not yet closed as the deal between the US government and Oracle Corporation is in the books.

However, TikTok is operating at a more loose jurisdiction now, and the company lives to fight another day to bring its services and uphold the features of the application in the country. TikTok is known to have amassed many US Citizens to register on the app, with a massive user base in the country alone.

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Written by Isaiah Alonzo

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