TikTok Poised for Deal to Avoid Millions in U.S. Privacy Damages
- Accord would end class-action lawsuits over biometric privacy
- Some lawyers say they were left out of settlement talks
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TikTok’s Chinese owner is proposing to settle consumer privacy litigation that has exposed it to hundreds of millions of dollars in damages as the video-streaming app prepares for a possible acquisition under threat of being shut down in the U.S. over national security concerns.
Lawyers for ByteDance Ltd. and consumers have “reached a settlement in principle, subject to certain conditions,” to resolve claims that the app unlawfully records facial-scan images of children and sends confidential information about adult users to China, according to a filing in Chicago federal court. The attorneys said they plan to file a final settlement proposal within 90 days.