New hurdle in TikTok privacy settlement

TikTok faces a new obstacle in its $400 million settlement with the U.S. government over children's privacy protections, as a federal judge has shown a tendency to reject part of the agreement related to ending a prior order that safeguards children's privacy. The settlement, approved by TikTok and ByteDance in August 2023, includes an immediate payment of $300 million and an additional $100 million if the order imposed by the Federal Trade Commission in 2019 is discontinued. This order requires TikTok to adhere to standards designed to protect children. The case stems from allegations by the government that the companies violated laws against collecting data from children without parental consent, with TikTok making recent changes to address these concerns. These include establishing a joint venture to protect user data in the United States and implementing age verification systems to prevent data collection from children under 13.

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