Four (4) cross-border class action suits against social media giants TikTok and X (formerly Twitter) have been recently filed in Germany, alleging violations of German and EU law, particularly the Digital Services Act (DSA), the General Data Protection Regulation (GDPR), and the new Artificial Intelligence Act (AI Act).[1] The class action suits were filed by the Dutch Foundation for Market Information Research (Stichting Onderzoek Marktinformatie, or SOMI), a non-profit organization authorized to bring cross-border representative actions for consumers in the European Union.[2]
According to Spirit Legal,[3] the Germany-based law firm representing SOMI, the alleged violations committed by TikTok and X include the following:
- Violations of TikTok: TikTok manipulates young users by using addictive design strategies, and misuses sensitive data to fuel its recommendation algorithms, violating the AI Act’s ban on manipulative, deceptive, and exploitative AI systems and engaging in illegal surveillance through its in-app browser;
- Violations of X: X has failed to report data breaches and inform affected users, has not provided compensation, and unlawfully processes sensitive data for recommendation algorithms without legal basis; and
- Common violations by both platforms: Both TikTok and X facilitate the spread of disinformation, deepfakes, and misleading content during the election period.
Key demands of the lawsuits are the following:
- Ban on unlawful profiling and processing of sensitive personal data for personalized content and advertising;
- Stronger child and youth protection measures against harmful content;
- Effective measures against disinformation and foreign interference to safeguard the integrity of democratic elections;
- Financial compensation for affected users:
- TikTok: Compensation ranging from €500 to €2,000 per user, with approximately 20 million users in Germany; and
- X: Compensation between €750 and €1,000 per user, with an estimated 11 million users in Germany.
Under Directive (EU) 2020/1828, known as the Collective Redress Directive,[4] qualified entities, such as SOMI, may seek both injunctive measures (to cease or prohibit unlawful practices) and redress measures (such as compensation) on behalf of consumers, in order to protect the collective interests of consumers within the European Union.
Legal Spirit has encouraged affected users to register with the Federal Office of Justice in Bonn via the class action register, once available. Users can also sign up directly via SOMI’s platforms.[5]
Source: Spirit Legal
[1] https://www.spiritlegal.com/en/news/details/press-release-class-actions-filed-against-tiktok-and-x-in-germany-a-test-for-the-dsa-gdpr-and-ai-act.html
[2] https://somi.nl/en/
[3] https://www.spiritlegal.com/en/news/details/press-release-class-actions-filed-against-tiktok-and-x-in-germany-a-test-for-the-dsa-gdpr-and-ai-act.html
[4] https://eur-lex.europa.eu/eli/dir/2020/1828/oj/eng?utm_source=chatgpt.com
[5] https://somi.nl/en/
