If you're an Illinois resident who recently received electronic payment from TikTok, it's likely not a scam -- it's the result of one of two Illinois class-action lawsuits filed against the social media platform.
In December of 2019, a class-action complaint was filed in a Northern Illinois District court by two mothers of young teens against social media applications Musical.ly and TikTok. According to court documents, the complaint alleges that the social media platforms, "in a quest for profits, surreptitiously tracked, collected, and disclosed" the personal information and viewing data of children under the age of 13 without parental consent.
The complaint goes on to say that, as a result of these "unfair" and "deceptive" business practices, children have been stalked online by adults.
Later that month, after several motions, and "significant discovery," a settlement with the defendants was reached and final approval was granted, court documents say.
According to lawyers for the suit, the settlement, which will distribute $1,100,000 among class-action members, is the "first of its kind."
"The settlement," a motion reads, "which achieves compensation for the alleged unlawful collection of minor children’s personal information, represents the first settlement of its kind and is therefore a landmark settlement for privacy cases."
The settlement website states that as of Aug. 30, 2022, all case appeals have been dismissed by the court, and that payments have begun to be disbursed.
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Here's what else we know about the settlement.
Who is Eligible for Payments?
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According to the settlement website, eligible class-action members must live in the U.S. but are not limited to those who reside in Illinois.
"If you or your child used the Musical.ly and/or TikTok software application when under the age of 13, you may be entitled to a payment," the settlement website says.
Those who aren't sure whether they are owed a payout are urged to contact the Settlement Administrator, at (833) 934-1184, or info@MusicallyClassActionSettlement.com.
Can I Still Join the Class-Action Suit?
No.
The deadline to file a claim to be part of the suit was July 24, 2021. According to the suit, potential members were notified to join the class action "through media publications," and across websites and social media platforms as a part of a digital ad campaign.
How And When Will Payments Be Distributed?
According to an update posted to the settlement website on Aug. 30, 2022, distribution has already begun.
"Settlement payments will be disbursed in the next 2-3 weeks," the August update reads.
According to the suit, payments will be distributed electronically.
Yes, There Is Another TikTok Class Action Settlement Out There
A different class-action settlement filed in Illinois against TikTok alleges that the video-sharing app violated both federal law and Illinois’ Biometric Information Privacy Act, with the site allegedly collecting biometric data from users and then disclosing it to third-party companies without the consent of those affected.
According to the lawsuit, the settlement will create a $92 million fund to be distributed among class members.
While a judge has approved the settlement, "it cannot become effective and settlement payments cannot be issued until all appeals are resolved," lawyers for the settlement say.
According to the settlement website, there is no estimated time frame as to how long that may take.
The deadline to file a claim in this class-action lawsuit was March 1, 2022.
