What is TikTok's class action settlement?

CERTAIN TikTok users may be eligible for a payment from a class action lawsuit settlement.

United States based users will receive a notification if they qualify to apply for the funds.

What is TikTok's class action settlement?

On Monday, November 15, 2021, many TikTok users opened their app to a notification stating they may be eligible for a payment from a recent class action lawsuit.

Not much detail is given, except for a link that directs certain users to a website where they are able to file their individual claims.

The legal case, which is officially known as TikTok, Inc., Consumer Privacy Litigation, is legitimate.

It is being overseen by the United States District Court for the Northern District of Illinois.

The lawsuit alleges that TikTok's parent company – ByteDance – collects the personal data of its users without getting formal consent.

This is a violation of federal law if it is true. The personal data they are referencing includes things like phone numbers, biometric data and location.

How do the payments work?

Although TikTok has denied said allegations, they agreed to a settlement payment to avoid taking the case to trial.

The settlement is for $92million, which would cover attorney fees, various administrative costs and the claims of individual TikTok users who fill out the required form.

Users who fill out the form and qualify will likely see a small fraction of the settlement payment.

In the United States alone – which is where the settlement applies to – there are over 130million TikTok users. If everyone were to fill out the form and qualify, they'd likely receive a payment of around 50 to 70 cents.

Who is qualified to receive a payment?

While technically every United States user is qualified, there are some hurdles.

For one, users must have been active on TikTok before September 30, 2021.

Residents of Illinois who use TikTok could be offered up to six times as much money, provided that they have used the app to actually create videos – not just to watch videos.

The lawsuit alleges that TikTok specifically violated Illinois' biometric privacy law.

Claims must be filed before March 1, 2022 in order to be eligible. After filling out the form, one must choose whether they prefer to receive payment via Mastercard, PayPal, Venmo or paper check.

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