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TikTok Pays $92 Million
Settlement To FTC

15/01/24

By:

Alison Piroe

TikTok Agrees to Pay $92 Million to Settle FTC Charges of Collecting Unauthorized Data from Children.

TikTok has agreed to pay $92 million to settle charges by the Federal Trade Commission (FTC) that it collected unauthorized data from children under the age of 13.


The FTC alleged that TikTok collected a variety of data from children, including their names, birthdays, locations, and contact information, without obtaining their parents' consent.


The settlement requires TikTok to obtain explicit parental consent before collecting data from children and to take steps to delete any existing data that was collected from children without their parents' consent. It also requires TikTok to implement a number of other measures to protect children's privacy, such as providing more transparent disclosures about how data is collected and used.


"This settlement is a significant step in protecting children's privacy online," said FTC Chair Lina Khan. "TikTok's widespread collection of personal information from children without their parents' consent was a serious violation of the law. We will continue to take enforcement action against companies that fail to protect children's privacy."


TikTok has said that it is committed to complying with the settlement and that it has already taken steps to address the FTC's concerns. "We are pleased to have reached a resolution with the FTC that will allow us to continue to serve our community of users," said a TikTok spokesperson.


This settlement is the latest in a series of enforcement actions by the FTC against social media companies for violating children's privacy. In 2019, the FTC fined Musical.ly, now known as TikTok, $5.7 million for collecting unauthorized data from children. And in 2023, the FTC fined Meta, the parent company of Facebook, Instagram, and WhatsApp, $5 billion for violating children's privacy.


Affiliate Flash’s Take:


This news story is interesting for affiliate marketers in a few ways.

  • It highlights the importance of data privacy and compliance with regulations. Affiliate marketers need to be aware of the data privacy laws that apply to their industry and make sure that they are compliant with them. This settlement with TikTok is a reminder that serious consequences can result from violating data privacy laws.

  • It shows the potential impact of regulatory actions on affiliate marketing programs. The FTC's enforcement actions against TikTok and other social media companies could have a ripple effect on the affiliate marketing industry. Affiliate marketers may need to adjust their strategies to comply with new regulations or face potential penalties.

  • It emphasizes the need for transparency and accountability in affiliate marketing. Affiliate marketers should be transparent about their relationships with advertisers and provide clear disclosures about how they collect and use user data. This will help to build trust with consumers and protect the industry from regulatory scrutiny.


This TikTok settlement is just another example of how regulation and regulatory bodies are beginning to ramp up the fight for data protection and online privacy.


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