A proposed settlement between TikTok, ByteDance and the US Department of Justice has faced a new legal hurdle, after a federal judge indicated the possibility of rejecting part of the agreement, which has a total value of $400 million.
The company had agreed to pay $300 million immediately, with $100 to be paid An additional $1 million if the court agrees to terminate a previous consent order issued by the US Federal Trade Commission.
The case stems from accusations that TikTok, through the company that previously ran the Musical.ly application, did not obtain parental consent before collecting data. A character belonging to children under the age of 13.
US Judge George Wu noted that the information provided to the court is not currently sufficient to justify ending the 2019 consent order, which includes reporting and record-keeping obligations through 2029.
Developments come The new update comes at a time when TikTok continues to strengthen age verification systems and user data protection in the United States.
