TikTok states it may share all collected user data with third parties during or in anticipation of a merger, acquisition, asset sale, or bankruptcy proceeding.
This analysis describes what TikTok's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The clause establishes a data transfer mechanism that permits user information to flow to entities that acquire TikTok's assets or operations, ensuring business continuity of data holdings across corporate structure changes without requiring separate user consent at the time of transaction.
Under this provision, collected data including account information, content, biometric data, and behavioral profiles could be shared with a potential acquirer during transaction negotiations; users cannot prevent this transfer under the terms stated.
How other platforms handle this
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Uber may share data about users, including personal information, with law enforcement officials, government authorities, and private parties as required by law, and in response to legal process, court orders, or government requests, including national security or law enforcement requirements.
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"We may share Information We Collect in connection with or during negotiations of a corporate transaction, such as a merger, acquisition in full or in part, reorganization, asset sale, or in the unlikely event of bankruptcy.— Excerpt from TikTok's TikTok Privacy Policy
1) REGULATORY LANDSCAPE: Corporate transaction data transfer provisions are standard in consumer privacy policies but engage FTC requirements regarding notification when a company's data practices materially change following a transaction. CCPA and CPRA may require that any acquirer honor outstanding consumer rights requests and that privacy practices of the acquiring entity be disclosed. State AG offices have taken enforcement interest in data practices following corporate acquisitions. 2) GOVERNANCE EXPOSURE: Low to Medium. This provision uses standard industry language for corporate transaction data transfers. The specific concern for TikTok relates to the national security and regulatory context in which any corporate transaction would occur, including potential CFIUS review requirements, which could affect the practical scope of permissible data transfers. 3) JURISDICTION FLAGS: California CCPA and CPRA may require notification to consumers if a corporate transaction results in materially different privacy practices. Other state comprehensive privacy laws have similar notification provisions. 4) CONTRACT AND VENDOR IMPLICATIONS: B2B partners and advertisers with data-sharing agreements with TikTok USDS Joint Venture LLC should assess whether their contracts address data handling obligations in the event of a corporate transaction, including representations about data use by any successor entity. 5) COMPLIANCE CONSIDERATIONS: Compliance teams should assess whether any corporate transaction involving TikTok USDS Joint Venture LLC would trigger consumer notification obligations under applicable state privacy laws and whether outstanding data rights requests would be honored by a successor entity.
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The clause establishes a data transfer mechanism that permits user information to flow to entities that acquire TikTok's assets or operations, ensuring business continuity of data holdings across corporate structure changes without requiring separate user consent at the time of transaction.
Under this provision, collected data including account information, content, biometric data, and behavioral profiles could be shared with a potential acquirer during transaction negotiations; users cannot prevent this transfer under the terms stated.
ConductAtlas has identified this type of provision across 9 platforms. See the full comparison.
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