The TikTok's parent company is accused of illegally collecting data on children
In 2017 ByteDance acquired Musical.ly, after that it became one of the most popular music applications in the world and received the name TikTok.
however, the company was sued as it was assumed that the app collects data about its users most often at the age of under 13, and then sells them to advertisers. All this is done without parental consent for some data "since at least 2014".
This issue is regulated by a special law: The Children's Online Privacy Protection Act, or COPPA. It forbids any company or social network to collect any data about children without the consent of their parents. A major challenge for any company is the lack of such consent in collecting data, and it can be subject to many lawsuits.
In turn, ByteDance said: "WE DISAGREE WITH MUCH OF WHAT IS ALLEGED IN THE COMPLAINT. Moreover, "TikTok was made aware of the allegations in the complaint some time ago, and although we disagree with much of what is alleged in the complaint, we have been working with the parties involved to reach a resolution of the issues," a TikTok spokesperson told The Verge. "That resolution should be announced soon.
Such situation occurs with ByteDance not for the first time. This year, Musical.ly already had to solve the issue of violation of COPPA, the settlement of the issue cost US$5.7 million. Other large companies also had similar situations. For example, in September YouTube had to pay a fine of US$170 million for the same violations.