TikTok sellers in the U.S. must prioritize data privacy to comply with regulations, protect customer trust, and avoid hefty fines. With laws like COPPA and updates to TikTok‘s privacy policies, it’s essential to follow these key rules:
- Protect Children’s Data: Adhere to COPPA by obtaining parental consent for users under 13 and minimizing data collection.
- Be Transparent: Clearly disclose what data you collect, why, how it’s used, and who it’s shared with.
- User Data Rights: Provide tools for users to access, correct, or delete their data quickly and efficiently.
- Secure Customer Data: Use encryption, access controls, and limit unnecessary data sharing.
- Follow TikTok’s Privacy Controls: Regularly update settings to align with TikTok’s policies and reporting requirements.
Non-compliance can lead to fines up to $50 million or 30% of annual revenue. Protect your business by staying informed and prioritizing privacy practices.
1. Follow COPPA Rules and Protect Children’s Data
Legal Compliance with Data Privacy Laws (e.g., COPPA)
The Children’s Online Privacy Protection Act (COPPA), passed in 1998, is designed to safeguard the privacy of children under 13 by requiring parental consent before collecting their personal information. This law applies to any commercial website or online service targeting children or knowingly gathering data from users under 13. It also extends to foreign businesses if they collect data from U.S. residents or use servers based in the U.S. . For TikTok sellers operating in the U.S. market, compliance with COPPA is non-negotiable.
The penalties for violating COPPA are severe, with fines reaching up to $53,088 per violation . A notable example is YouTube’s $170 million fine in 2019 for non-compliance. More recently, in August 2024, the U.S. Department of Justice filed a complaint against ByteDance, accusing the company of "knowingly and repeatedly violating children’s privacy laws on a massive scale" by collecting data from millions of young TikTok users without parental consent.
"TikTok knowingly and repeatedly violated kids’ privacy, threatening the safety of millions of children across the country", said FTC Chair Lina M. Khan.
Transparency in Data Collection and Usage
TikTok sellers need to establish clear processes to determine whether their content is directed at children. The Federal Trade Commission (FTC) evaluates factors like the subject matter, visual elements, animated characters, music, age of models, use of child celebrities, language complexity, advertising content, and audience data.
For content aimed at children, sellers must create straightforward privacy policies. These policies should explain what data is collected, how it is used, and the steps taken to protect it, especially when handling minors’ personal information.
TikTok has introduced several features to protect young users. In the U.S., the platform offers a "Kids Mode", where accounts are private, video creation is allowed but not public posting, and screen time is capped at one hour . Additionally, TikTok limits the data collected from users under 13 and ensures it is not sold to third parties. Parents are notified and given tools to manage their child’s data effectively.
Mechanisms for User Data Management (Access, Correction, Deletion)
Under COPPA, parents have specific rights over their child’s data. They can access, review, and request the deletion of their child’s personal information, as well as prevent further collection or use of that data. TikTok provides a system for parents or guardians to make such requests. Sellers must ensure they do not collect personal information from users under 13.
These measures should be paired with strict data security practices and clear limitations on data sharing.
Best Practices for Data Security and Sharing Limitations
A key principle of COPPA is data minimization. Sellers should only collect the personal information necessary for an online activity and retain it only as long as needed for its intended purpose. Once the data is no longer required, it should be securely deleted.
Parents can consent to the internal use of their child’s information while restricting its disclosure to third parties. TikTok aligns with this principle by ensuring children’s data is not shared with third parties for cross-context behavioral advertising.
Alignment with TikTok‘s Privacy Policies and Updates
COPPA requirements complement TikTok’s broader data privacy strategies. TikTok regularly updates its Children’s Privacy Policy, and sellers must stay informed of these changes to ensure their practices comply with both TikTok’s policies and COPPA regulations. Failure to comply can lead to legal consequences, harm to reputation, and regulatory scrutiny.
"The Justice Department is committed to upholding parents’ ability to protect their children’s privacy", said Principal Deputy Assistant Attorney General Brian Boynton.
To stay compliant and protect users, sellers should routinely review TikTok’s policy updates and adjust their practices accordingly.
2. Create Clear Data Collection and Usage Policies
Transparency in Data Collection and Usage
Data privacy is a top priority for consumers – 87% of them consider it essential. As a TikTok seller, you need to establish clear and transparent data collection policies. These policies should outline exactly what data you collect, why you collect it, how it’s used, who it’s shared with, and how long it’s retained. Being upfront about these details not only builds trust but also helps you meet critical privacy regulations.
TikTok itself collects data from users through direct input, third-party sources, and automated processes. Similarly, you should ensure your data collection practices are equally transparent. Explain how the information you gather improves customer experience while respecting their privacy rights.
Legal Compliance with Data Privacy Laws
To create strong privacy policies, you must comply with regional laws such as GDPR and CCPA. These regulations require you to disclose specific data practices and protect user rights. Use clear, accessible language in your policies to explain how data is collected, used, and safeguarded. Focus on data minimization – collect only the information you truly need to operate your business. This approach not only meets legal standards but also reassures customers by avoiding unnecessary data collection.
Be explicit about your data-sharing practices as well. With 73% of TikTok users worried about third-party data sharing, it’s critical to clarify when and why customer data might be shared. Just as TikTok discloses sharing data with business partners, advertisers, researchers, and legal authorities when necessary, your policy should clearly state your own practices in this area.
Mechanisms for User Data Management
Empowering users to manage their personal data is a key component of transparency. Your privacy policy should include clear instructions for accessing, downloading, updating, or deleting personal information upon request. Provide contact details and specify any documentation required to process these requests. Offering self-service tools on your platform or website can make data management easier for your customers and demonstrate your commitment to respecting their privacy.
Best Practices for Data Security and Retention
Strong data security measures are essential to protect customer information. Regularly review and update your security protocols to ensure they meet current standards. Your privacy policy should also detail your data retention practices, including how long you store information and the steps you take to securely delete it once it’s no longer needed.
Alignment with TikTok’s Privacy Policies and Updates
Staying in sync with TikTok’s privacy policies is vital for maintaining compliance and trust. TikTok regularly updates its privacy policies – the most recent update was on July 8, 2025.
"We are committed to protecting and respecting your privacy." – TikTok
Regularly review TikTok’s policies and adjust your settings to align with their standards. Implement advanced security measures like two-factor authentication and make use of TikTok’s privacy-focused business tools to ensure your practices remain compliant.
TikTok tries to convince us it’s keeping your data safe
3. Allow Users to Access, Correct, and Delete Their Data
User control over personal data isn’t just good practice – it’s the law. Privacy regulations like GDPR and CPRA require companies to give individuals the ability to access, update, download, or delete their personal information upon request. For TikTok sellers, this means having systems in place to process such requests quickly. Failing to comply could result in hefty fines or even losing access to TikTok Shop data. It’s worth noting that 92% of businesses express concerns about data protection, making it a priority for everyone involved.
Mechanisms for User Data Management
TikTok offers users multiple ways to manage their data, including in-app settings or contacting support at support@tiktok.com for more complex requests. Sellers should follow suit by setting up clear and accessible channels for handling data inquiries. This could include email support, web forms, or tools integrated directly into their websites. Additionally, partners and developers working with TikTok data must be prepared to assist with these requests to ensure compliance. Streamlining these processes not only meets legal requirements but also strengthens user trust.
Best Practices for Data Security and Sharing Limitations
Protecting user data is critical. A data breach can lead to misuse, impersonation, or severe reputational damage. It’s essential to delete data promptly when sharing is no longer authorized. For instance, if a seller stops working with a partner, that partner must erase any shared personal data without delay, as required by state laws. Assigning dedicated personnel to oversee compliance can help ensure these processes are handled correctly.
"Users trust platforms like TikTok with their data, and this trust must be respected." – Privacy and Data Protection Office, TikTok
Alignment with TikTok’s Privacy Policies and Updates
Staying aligned with TikTok’s privacy policies is just as important. TikTok’s privacy policy, updated on August 19, 2024, highlights users’ rights and emphasizes their control over personal data. The platform stresses the importance of user empowerment, stating:
"At TikTok, we know that creativity and expression are personal. And so is privacy. That’s why we empower our community with a range of controls to manage their online presence and decide the TikTok experience that’s right for them." – TikTok
Sellers should adopt a similar approach by providing user-friendly tools for data management, respecting privacy preferences, and staying informed about policy changes. Doing so ensures compliance with regulations and helps build the trust necessary for long-term success on TikTok Shop.
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4. Protect Customer Data and Limit Data Sharing
Keeping customer data safe is not just a legal obligation – it’s essential for earning and maintaining trust. A staggering 81% of customers abandon shopping after experiencing a data breach. For TikTok sellers, this means implementing strong data security measures and limiting unnecessary sharing of customer information. Transparent data policies are a good start, but strong security protocols are what truly protect sensitive information and ensure compliance with legal standards.
Best Practices for Securing Data and Limiting Sharing
TikTok gathers three types of information: user-provided data, automatically collected data, and data from other sources. Once this information enters your systems, it’s your responsibility to safeguard it. Here’s how:
- Encryption: Use AES-256 encryption to secure your databases. Make sure personal data is encrypted both at rest and in transit to prevent unauthorized access.
- Access Control: Implement role-based access control with multi-factor authentication for accounts handling sensitive data. Regular audits can help identify and minimize risks.
- Account Isolation: Keep business activities isolated to reduce the risk of cross-contamination. Activate two-step verification for TikTok Ads Manager and Business Center, and use email domain allowlists to limit account access.
These steps are especially critical when 73% of business accounts face potential vulnerabilities without proper protections.
Complying with Data Privacy Laws
Data privacy laws like GDPR and CCPA/CPRA are non-negotiable for businesses handling customer information. Non-compliance can result in hefty fines – GDPR penalties alone can reach up to €20 million or 4% of annual global revenue. These regulations require clear consent for data collection, detailed privacy disclosures, and transparent opt-out options.
To meet these requirements:
- Appoint a Data Privacy Officer: Designate someone in your organization to oversee compliance and ensure all protocols are followed.
- Create Privacy Notices: Clearly explain how you collect, use, transfer, and protect customer data in your privacy notices.
- Be Transparent: With 67% of users unaware of TikTok’s behavioral tracking capabilities, it’s crucial to be upfront about your practices. Transparency builds trust.
Staying Aligned with TikTok’s Privacy Policies
TikTok regularly updates its privacy policies, so staying informed is key. Monitor these updates and review third-party integrations to ensure they adhere to security standards. TikTok also offers privacy settings that let users control content visibility, data permissions, and account security.
"Smart business leaders recognize a fundamental truth: TikTok success and data privacy aren’t mutually exclusive." – Keith Kakadia, Founder at Sociallyin
Businesses that optimize their privacy settings report 47% fewer security incidents. Additionally, enabling advanced security features can reduce vulnerability to unauthorized access by 58%.
5. Follow TikTok’s Privacy Controls and Reporting Requirements
TikTok’s privacy controls and reporting guidelines are essential for maintaining compliance while selling on the platform. With 92% of business accounts actively using these controls to protect their digital assets and customer data, adhering to these requirements is a must for anyone leveraging TikTok for business.
Staying Updated on TikTok’s Privacy Policies
TikTok frequently updates its privacy policy, and the "Last Updated" date serves as an indicator of any changes. By continuing to use the platform after updates, users signal their acceptance of the revised policies.
"We may update this Privacy Policy from time to time. When we update the Privacy Policy, we will notify you by updating the ‘Last Updated’ date at the top of the new Privacy Policy, posting the new Privacy Policy, or providing any other notice required by applicable law. We recommend that you review the Privacy Policy each time you visit the Platform to stay informed of our privacy practices." – TikTok Privacy Policy
In 2024, TikTok introduced expanded content moderation rules, focusing on misinformation, synthetic media, and harmful challenges. Additionally, the platform enhanced its privacy settings, offering users more control over how their data is collected and used. Sellers need to adopt these updates to align with TikTok’s security measures.
Strengthening Data Security and Sharing Practices
TikTok enforces strict community guidelines to safeguard users from harmful content, hate speech, misinformation, and explicit material. Sellers should reflect these standards in their own practices.
The platform collects user data to enhance the experience, storing it in secure data centers. Accounts with optimized privacy settings report 47% fewer security breaches, and those using advanced security features face 58% fewer unauthorized access attempts. This demonstrates the importance of leveraging TikTok’s built-in tools to protect both sellers and their customers.
Building Trust Through Transparency
Clear data practices are key to building trust. TikTok provides users with privacy controls to manage their online presence and customize their experience. These settings allow users to control how their data influences ads and even request a copy of their TikTok data at any time.
For sellers, transparency is non-negotiable. Research shows that 87% of consumers consider data privacy when engaging with brands, and 73% of TikTok users express concerns about third-party data sharing. TikTok requires businesses to disclose partnerships using built-in tools or approved hashtags, ensuring accountability.
Sellers can take a page from TikTok’s book by educating their audience about data collection practices and offering clear opt-out options. This proactive approach can help reinforce trust and credibility.
Complying with Data Privacy Laws
TikTok employs rigorous creator verification processes and enforces its privacy policies strictly. Violations can lead to penalties ranging from temporary restrictions to full account removal. Sellers must stay vigilant to avoid these consequences.
The platform integrates privacy principles throughout its product lifecycle, offering a variety of controls to suit user preferences. Sellers should regularly review and update these settings, use strong passwords, and keep their devices and apps updated to minimize security risks. By doing so, they not only comply with TikTok’s guidelines but also enhance their own operational security.
Comparison Table
To strengthen your compliance strategy, here’s a side-by-side look at TikTok’s default privacy settings compared to recommended best practices:
| Aspect | TikTok’s Default Approach | Best Practice Recommendations | Compliance Impact |
|---|---|---|---|
| Data Collection | Collects extensive data, including biometric information, often going beyond what other platforms collect | Adopt a data minimization approach – collect only what’s necessary for operations | Reduces the risk of GDPR fines, which can reach up to 4% of global annual revenue |
| User Consent | Default settings lack transparency and clear user consent mechanisms | Ensure explicit opt-in consent and offer clear opt-out options | Builds trust, as 87% of consumers prioritize data privacy when selecting brands |
| Data Sharing | Data sharing practices are subject to Chinese law, raising concerns about government access | Restrict third-party sharing and enforce "need-to-know" access controls | Addresses concerns from 73% of TikTok users about data sharing |
| Security Measures | Basic privacy settings are available but not optimized by default | Use two-factor authentication, conduct regular audits, and implement advanced security protocols | Companies with strong security measures report 60% fewer data-related incidents |
| Data Retention | Retention policies are determined by the platform | Create custom retention policies to avoid keeping data longer than necessary | Reduces breach risks and prevents unnecessary data accumulation |
This comparison highlights critical areas where TikTok sellers should improve their privacy practices. The stakes for non-compliance are high. For instance, in September 2023, the Irish Data Protection Commission fined TikTok €345 million for GDPR violations involving children’s data and default public settings for users aged 13–17.
Additionally, the average global cost of a data breach reached $4.45 million in 2023. This makes it clear: going beyond TikTok’s default privacy settings isn’t just about meeting regulations – it’s about protecting your business from hefty financial losses.
Conclusion
Data privacy on TikTok plays a critical role in building trust and driving sustainable business growth. The numbers speak for themselves: 92% of businesses express concerns about data protection when using social media platforms, and 87% of consumers prioritize data privacy when choosing platforms for brand interactions. Clearly, privacy compliance isn’t just a box to check – it’s a cornerstone of consumer confidence and operational success.
TikTok’s ability to deliver precise audience targeting results in a 6.1% conversion rate. At the same time, its strong privacy practices lead to a 47% increase in engagement and reduce risks of unauthorized access by 58%. On the flip side, non-compliance can result in hefty fines and lasting reputational harm. Notably, 92% of TikTok users take action on branded content, emphasizing the importance of privacy-compliant strategies.
"Safeguarding data is not only a legal obligation, but also a critical factor in fostering user confidence." – TikTok’s Privacy and Data Protection Office
Navigating TikTok’s ever-changing privacy landscape requires proactive measures. With increasing regulatory oversight, conducting monthly audits of privacy settings and adopting transparent data handling protocols can help ensure compliance. For businesses seeking extra support, professional services like Emplicit offer tailored TikTok Shops management and compliance expertise. Their track record includes managing over $550 million in sales and supporting more than 400 brands.
Ultimately, data privacy and success on TikTok go hand in hand. By embedding privacy into your business strategy – through regular audits, transparency, and staying current with compliance requirements – you’re not just protecting your operations, but also positioning your brand for long-term growth in a market that values privacy more than ever.
FAQs
What happens if TikTok sellers don’t follow data privacy laws like COPPA?
Non-compliance with data privacy laws, such as the Children’s Online Privacy Protection Act (COPPA), can spell big trouble for TikTok sellers in the U.S. Violations can result in civil penalties of up to $51,744 per violation per day, along with potential lawsuits and a damaged brand reputation that’s hard to repair.
To steer clear of these pitfalls, it’s crucial to stay informed about the regulations, safeguard customer data, and prioritize building trust with your audience.
How can TikTok sellers be transparent about collecting and sharing customer data?
TikTok sellers can establish trust and maintain transparency by being upfront about their data collection and sharing practices. A good starting point is to create a clear and straightforward privacy policy. This document should spell out exactly what data you collect, why you need it, and how it’s used. Make it easy for customers to find – post it prominently on your TikTok Shop profile or your website.
Another key step is to keep your customers in the loop. Share regular updates whenever there are changes to your privacy practices. Let users know what’s new and reassure them about how their data remains safe. Being transparent not only aligns with TikTok’s guidelines but also builds customer trust in your brand.
How can TikTok sellers stay compliant with privacy policies and protect customer data?
To ensure compliance with TikTok’s privacy policies and protect customer data, sellers should focus on the following practices:
- Stay informed: Regularly check TikTok’s privacy policies and seller guidelines for updates or changes.
- Handle data securely: Use trusted systems to store and manage customer data with care.
- Get clear consent: Always obtain explicit permission from customers before collecting or using their information.
- Limit data access: Restrict access to sensitive customer data to only those team members who absolutely need it.
- Monitor official updates: Keep an eye on TikTok’s announcements for any new policy changes or requirements.
Following these steps helps sellers maintain compliance while fostering customer trust.