TikTok’s terms update sparks privacy outrage among US users
Note: AI technology was used to generate this article’s audio.
- Under a deal finalized in January 2026 to avert a nationwide ban, TikTok’s US operations are now managed by TikTok USDS Joint Venture LLC, which is 80.1% owned by American and international investors (including Oracle and Silver Lake) and 19.9% by ByteDance.
- The updated Terms of Service explicitly permit the collection of precise geolocation and detail the processing of "sensitive personal information"—including racial or ethnic origin, gender identity, immigration status, and health details—disclosed within user-generated content.
TikTok, the popular short-form video platform, implemented a significant update to its terms of service for US users, effective immediately upon app launch.
This change accompanies the formation of TikTok USDS Joint Venture LLC, a new entity designed to address longstanding national security concerns related to its Chinese parent company, ByteDance.
American users, numbering over 200 million, encounter a pop-up notification outlining revised data practices, with acceptance implied through continued use of the app.
The joint venture stems from a deal finalized in January 2026, following a 2024 US law that mandated ByteDance divest its controlling stake or face a nationwide ban.
Under the agreement, US operations are now majority American-owned, with investors including Oracle, Silver Lake, and MGX holding 80.1 percent collectively, while ByteDance retains a minority 19.9 percent share.
This structure aims to sever potential ties to China, ensuring compliance with US regulations.
US user data will be stored and secured within Oracle's domestic cloud infrastructure, subject to third-party audits and adherence to standards such as NIST and ISO 27001.
The content recommendation algorithm will be retrained using US-specific data, with ongoing reviews to prevent foreign influence and safeguarding US interests.
The updated privacy policy expands data collection capabilities, notably permitting the gathering of precise geolocation information from users who opt in.
Previously limited to approximate locations derived from IP addresses or SIM cards, this feature remains optional and off by default, with users able to disable it via device settings.
The policy also allows for data on interactions with TikTok's AI tools, including prompts and creation details.
Additionally, the terms disclose the potential processing of sensitive personal information, such as racial or ethnic origin, immigration status, gender identity, and health details.
User reactions have been mixed, with some expressing alarm over the pop-up's single "Agree" button and perceived lack of opt-out options, leading to social media discussions and account deletions.
