Market Research Foundation (SOMI) is filing a claim for damages against TikTok. It says the social network of Chinese parent company ByteDance violates privacy and consumer laws on a large scale. In addition, the platform unlawfully exposes minors to harmful content. This is what SOMI writes on its website.
The Dutch foundation represents more than 64,000 concerned parents in Europe, including more than one million underage users from our country. Cor Wijtvliet, one of the founders of SOMI, believes European regulators are not acting against TikTok. According to him, filing a mass claim is the only way to get TikTok to implement privacy and security measures. The foundation is filing a subpoena with the court in Amsterdam today.
SOMI says TikTok is in gross violation of privacy and consumer laws. The social network fails to provide special protection for minors, which the foundation says violates the General Data Protection Regulation (GDPR). TikTok does not ask for parental consent where it is required and does not sufficiently consider children's interests when processing data. It also displays advertisements aimed at children.
Furthermore, TikTok is not meeting its transparency obligations under the AVG. The video platform does not provide minors and young teens with sufficient insight into how it handles their personal data. As a result, they cannot verify whether TikTok is lawfully processing their data and are "severely limited" in exercising their rights.
SOMI says the mass claim could reach 1.4 billion euros. In its calculations, the foundation assumes that children up to age 13 will receive compensation of 2,000 euros. Children aged 13 to 15 are eligible for 1,000 euros, and children aged 16 and 17 can count on 500 euros. Then, of course, the judge must grant the mass claim and determine whether the damage amounts are justified.
Speaking of money: SOMI is not currently working with a litigation funder. That means the foundation bears all litigation costs itself. To fund the case, SOMI is asking each new participant to pay a 17.50 euro registration fee. If the mass claim is successful, the foundation plans to retain 20 percent to cover the costs incurred. If the case fails in court, participants do not have to pay anything according to the no cure, no pay principle. Via this site participants can join the mass claim.
Attorney Douwe Linders, who represents SOMI, is confident of a happy ending. "It often seems nice and innocent, but TikTok is simply a profiling and advertising machine. SOMI has a strong case and we will fight for the interests of its supporters. But a giant like TikTok will not give in easily. We must have a long breath and proceed carefully," he reports to RTL News.
A TikTok spokesperson said protecting users' privacy and security is "the highest priority" for the company. "We are taking industry-leading steps to promote youth safety on TikTok, such as setting accounts to Private by default for users under 16, and allowing parents to link their account to their teenage child's through Family Pairing. We continue to evaluate and improve our policies, processes and systems, and continue to consult with outside experts," the spokesperson said.
TikTok has been under fire for some time. Early last year, the Federal Trade Commission (FTC) imposed a $5.7 million fine for illegally collecting data from minors. The social network also had to remove videos of children under 13.
Earlier this year, TikTok paid $92 million to settle dozens of privacy breach cases. Chinese parent company ByteDance processed the data of more than 89 million users in the U.S. alone, some of whom were as young as six years old. The Children's Online Privacy Protection Act (COPPA) requires companies to get parental consent if they want to collect data from children under 13. TikTok was also told that the application could no longer collect biometric data and location data from U.S. users.
The Consumers' Association is also unhappy with TikTok's practices. Together with consumer interest groups from 17 EU member states, the Union has filed a complaint with the European consumer rights organization BEUC. The bodies find it "shameless" that TikTok uses children as billboards to advertise their product.
They also argue that TikTok's terms and conditions are incomprehensible to teens. The company does not communicate clearly enough what data it collects and what it does with this data. Finally, the interest groups find it unacceptable that TikTok is allowed to use videos from content creators without permission or financial compensation.
In January, TikTok presented new, stricter privacy terms for underage users. All registered accounts of 13- to 15-year-olds have since been set to private by default. The social network also limits commenting on videos created by this age group, and downloads are now only allowed for users who are 16 and older.
"We know that protecting users and their privacy is never finished, and our innovation and investment does not stop here," Elaine Fox, head of privacy in Europe, the Middle East and Africa, told The Associated Press. "We will continue to evolve our policies and we will continue to work closely with regulators and experts in the field of safety for minors. We will also continue to invest in our technology and teams so that TikTok remains a safe place for everyone to express their creativity."
The Personal Data Authority is investigating whether TikTok's app is designed to be privacy-friendly, what information the app collects and whether that is properly explained in its terms and conditions.
