Brazil’s data authority has fined ByteDance roughly $30 million for mishandling the data of minors. The regulator specifically targeted TikTok’s 'logged-out' feature, which allowed users to access content without age verification. ByteDance must now delete the disputed data or face daily penalties, highlighting the growing regulatory pressure on global tech platforms regarding child safety.
Brazil’s National Data Protection Authority (ANPD) has issued a fine of 153.8 million reais—approximately $30 million—to ByteDance. The regulator cited systematic failures in how TikTok handled personal information belonging to users between the ages of 13 and 18. This action marks a significant moment in South American digital oversight, as authorities move to enforce stricter compliance under the country's General Data Protection Law.
The 'Logged-Out' Feed Issue
The core of the regulator's concern lies with TikTok's "logged-out feed." While many regions require account registration—which typically involves age verification—this feature allowed users in Brazil to consume content without signing in. The ANPD found that this gap allowed minors to access the platform without the necessary legal safeguards or parental oversight, leading to the unauthorized processing of data for roughly 8 million children.
Compliance and Financial Impact
ByteDance has been ordered to delete the personal data of these teenage users unless documented parental consent is provided. The company has a 60-day window to complete this process. If it fails to meet these requirements, it faces recurring daily penalties of 137,081.49 reais. To mitigate the immediate financial impact, the firm could see a 25 percent reduction in the total fine amount if it chooses to pay within 20 days and waives the right to appeal.
ByteDance has maintained that the fine relates to practices dating back to 2021 and argues that it has since updated its compliance protocols. The company is currently reviewing its legal options regarding the ANPD's ruling.
Global Regulatory Pressure on Tech Platforms
For observers of the technology sector, this event serves as a reminder of the rising regulatory costs for global internet platforms. Data privacy and child safety have become central themes for regulators worldwide. Similar to past settlements in the United States, where companies have faced significant penalties for privacy violations, this decision in Brazil highlights a trend where tech firms must navigate complex, varying legal frameworks across different jurisdictions.
Increased regulatory scrutiny often leads to higher operational costs, as companies are frequently forced to redesign platform features or strengthen age-verification systems, which can, in turn, impact user engagement and feature accessibility. The ANPD’s current investigation into other digital platforms suggests that the technology industry in South America may face continued regulatory and legal pressure in the coming months.