After Dutch DPA, this Netherlands-based non-profit hits TikTok with €6B class action lawsuit; here’s why

Netherlands-based Stichting Massaschade & Consument, a non-profit organisation that defends the rights of consumers, has filed a lawsuit against Chinese social video app, TikTok, demanding that it compensate 4.5 million Dutch users for illegally harvesting and auctioning sensitive user data.

The foundation says TikTok is violating a large number of laws and regulations with its actions, and asked the court in Amsterdam to order the company to pay damages to the tune of over €6B.

The foundation is claiming a fixed amount of damage per user, varying from €1.250 – €1.750 depending on users’ age group. The amounts are based on previous Dutch and European judgments in which the privacy of consumers was violated.

The new lawsuit follows a fine of €750K on TikTok for violating the privacy of young children in 2021. The fine was imposed by the Dutch Data Protection Authority (DPA) after a group of parents took the platform to court. 

Violating privacy

As per the current lawsuit, the information provided by TikTok to Dutch users – many of whom are young children – when installing and using the app was in English and thus not readily understandable. By not offering their privacy statement in Dutch, TikTok failed to provide enough explanation of how the app collects, processes and uses personal data.

Lucia Melcherts, chairperson of the foundation explains, “We are particularly concerned about TikTok’s collection of often very personal information. It is not about what information you share with them, but how much time you spend watching the videos on the platform. Its algorithm keeps track of every second you watch, in order to present you with videos that keep you glued to the app for as long as possible, or lure you into virtual transactions. Not only young people but also (young) adults are sensitive to this.”

The lawsuit is being financed by a litigation financier, IVO Capital, which is underwriting the costs of the proceedings in advance. This allows all TikTok users for whom the foundation is acting to participate free of charge. The case will be handled by law firm bureau Brandeis and its partners Christiaan Alberdingk Thijm and Louis Berger.

About the foundation 

Stichting Massaschade & Consument is an independent non-profit organisation that defends the rights of consumers in cases of mass damage. The organisation ensures that disadvantaged consumers are compensated.

In the case of TikTok, the foundation represents the interests of young people as well as (young) adult users. At the moment, more than 70 per cent of TikTok’s Dutch user base is 18 years or older.