TikTok and its parent company, ByteDance, have been accused of violating children's online privacy in the US. Both companies will pay $400 million, or approximately Rs 3,300 crore, to settle the case.
Big action on TikTok regarding children's privacy
If you also use TikTok, then this news related to children's privacy is very important for you. Recently, TikTok and its parent company ByteDance suffered a major setback in the US in a case related to children's online privacy. According to the US Justice Department, both companies will pay $400 million, or approximately Rs 3,300 crore, to settle this case. It is alleged that the platform collected children's online privacy information without parents' permission.
This case concerns the online safety of children and the privacy of their data. US officials alleged that TikTok did not comply with regulations regarding the data of children under the age of 13.
How much will TikTok pay?
According to the US Justice Department, under the agreement, TikTok will have to pay an immediate fine of $300 million (approximately Rs. 2,500 crores). Furthermore, if the previous injunction against Musical.ly is lifted, the company will have to pay an additional $100 million (approximately Rs. 830 crores). This means the company's total payment will be $400 million, which translates to approximately Rs. 3,300 crores in Indian currency.
What is COPPA law?
COPPA (Children's Online Privacy Protection Act) is a US law that prohibits companies from collecting personal information from children under the age of 13 without parental permission. US officials have alleged that TikTok failed to comply with this rule.
What are the allegations against TikTok?
The US Department of Justice and the Federal Trade Commission (FTC) filed a lawsuit against TikTok in 2024, claiming that even the 'Kids Mode' app, designed for children under 13, collected email addresses and other personal information from users to create accounts, compromising the online safety of millions of children.
How is the matter related to Musical.ly ?
This issue isn't limited to TikTok alone; the US previously filed a COPPA-related case against Musical.ly in 2019. ByteDance acquired Musical.ly in 2017 , but it was later merged with TikTok.
