TikTok Inc. agreed to pay $92 million to settle privacy lawsuits claiming the app illegally recorded facial-scan images of users and disclosed private data to third parties.
U.S. District Judge John Z. Lee in Chicago must approve the deal announced Thursday and told lawyers in September that it will be rejected if it doesn’t represent everyone’s interests.
The Trump administration contended TikTok is a national security threat because its ownership by Beijing-based ByteDance Ltd. gives the Chinese government access to the personal data of millions of Americans. The Biden administration signaled it would slow down Trump’s effort to force TikTok to unwind its U.S. operations. Litigation challenging Trump’s ban of the popular video app is on hold while the new White House reviews its predecessor’s policies.