US judge signals rejection of part of TikTok privacy settlement

A federal judge in Los Angeles has tentatively signaled his rejection of a key component in a $400 million settlement between TikTok, its parent company ByteDance, and the U.S. Department of Justice. The settlement aims to resolve allegations that the platform violated children’s online privacy laws by failing to obtain parental consent before collecting data from users under 13.

The proposed deal involves an immediate $300 million payment, with an additional $100 million contingent upon a court terminating a 2019 consent decree originally imposed on Musical.ly, TikTok’s predecessor. U.S. District Judge George H. Wu indicated he is inclined to reject the request to end this decree, stating that the court cannot yet determine if the termination is a “durable remedy” or suitably tailored to changes in circumstances.

The 2019 Federal Trade Commission decree requires TikTok to maintain specific reporting and record-keeping obligations through 2029. While the Justice Department argued that TikTok has undergone significant changes in management, ownership, and compliance practices, Judge Wu noted that the obligations imposed by the order have not been shown to be unnecessary.