TikTok Fined Over $7 Million in South Korea for Illegal Data Collection for Targeted Ads

South Korea's Personal Information Protection Commission (PIPC) has imposed a significant fine of 10.3 billion won (approximately $7.3 million USD) on TikTok for violating personal information protection laws. The popular video-sharing platform is accused of illegally collecting and utilizing the behavioral data of 9.45 million domestic users for targeted advertising purposes.

The PIPC's investigation revealed that TikTok distributed tools to third-party website and app operators to collect user activity data. This data included records of actions such as clicks, purchases, items added to shopping carts, inquiries, downloads, searches, and content views. This information was allegedly used to provide advertising and content performance analysis services, effectively creating personalized ad experiences without a lawful basis or explicit user consent.

The commission found that TikTok violated Article 22, Paragraph 1 of the Personal Information Protection Act, which mandates clear consent for data collection. Users reportedly were not provided with clear details about the scope and purpose of data collection when agreeing to service terms and privacy policies during sign-up. The investigation also confirmed the collection, use, and transfer of behavioral data to overseas entities without proper legal grounds.

This regulatory action in South Korea was prompted by a class-action lawsuit filed in the United States. Following news of a $95 million USD settlement reached by Apple in January of the previous year to resolve similar allegations related to its voice assistant, the PIPC initiated a domestic investigation into TikTok's practices. The commission has ordered TikTok to take corrective measures and publicly announce the ruling.