In a landmark decision that could reshape how companies handle tracking technologies, an appellate court recently revived a lawsuit filed by non‑TikTok users who claim the social media giant tracked their web activity without consent. The lawsuit alleges that TikTok deployed tracking pixels on unrelated third-party websites, effectively capturing visitors’ browsing behavior even though they had no direct relationship with TikTok.
The plaintiffs argue that this conduct violates both the California Invasion of Privacy Act (CIPA) and federal wiretap laws, which prohibit the unauthorized interception of electronic communications. What makes this case so significant is that the plaintiffs never downloaded the TikTok app or created an account. Instead, their claim is rooted entirely in passive third-party data collection, raising urgent questions for companies about how they handle embedded technologies and data sharing practices.
The appellate court held that the plaintiffs’ allegations were sufficient to proceed, reasoning that tracking pixels can indeed capture the “contents” of communications under privacy statutes. The court also affirmed that plaintiffs had standing based on the mere collection of their browsing activity, even if they suffered no tangible economic harm. This decision opens the door to a broader interpretation of what constitutes a privacy violation—and who can bring a claim.
Legal Exposure Beyond Users and Intent
This case emphasizes that privacy obligations extend beyond direct users or account holders. Businesses may face liability for tracking non-users through embedded third-party tools—especially when those tools operate without explicit, informed consent. Many companies fail to audit or even fully understand the behavior of the third-party scripts running on their websites, leaving them exposed to legal risks.
To help you stay compliant, Captain Compliance offers consent management software that detects and manages third-party scripts, cookies, and tracking technologies to prevent unauthorized data collection.
- Lack of visibility into third-party trackers embedded via tag managers
- Overreliance on vendors without compliance oversight
- Misconfigured cookie banners or outdated privacy notices
- Assuming non-users aren’t covered under modern privacy laws
The decision shows that even minimal or unintended data interception by third-party vendors can create strict liability under privacy statutes.
Social Media Platforms and Regulatory Fines
This legal development is part of a broader trend of regulatory enforcement. Social platforms like Meta, TikTok, and Twitter (X) have faced substantial penalties for privacy violations. For example, TikTok was fined €345 million by EU authorities for mishandling children’s data, while Meta has accumulated over $1.3 billion in fines related to consent and data transfers under the GDPR.
With US state privacy laws like CPRA and Colorado’s Privacy Act now in full force, companies with embedded trackers—including those using social media pixels—must be vigilant. Your business could be held accountable even if you don’t directly use the data collected.
How Companies Can Stay Ahead
To reduce litigation risk, companies must take proactive steps to assess and control third-party data activity on their websites. Here’s a simple five-step strategy to improve compliance:
- Audit third-party scripts across all digital properties.
- Create a tracking inventory with vendor names, data use, and consent basis.
- Implement real-time monitoring tools for tag injection or script changes.
- Review your privacy policies and cookie banners to ensure alignment with actual tracking behavior.
- Negotiate strong data protection terms in vendor contracts.
Use our privacy policy generator to ensure your disclosures meet the legal requirements of today’s complex digital environment. Transparency is critical to reduce the risk of fines and lawsuits.
Final Thoughts
The court’s decision to revive the TikTok lawsuit is a clear warning to companies that tracking technologies—even when deployed passively or indirectly—can create real legal exposure. As more state and federal courts interpret these tools as “intercepting” communications, it’s vital that businesses act now.
Captain Compliance provides website audits, compliance automation, and continuous monitoring solutions to help you avoid becoming the next headline. Whether you’re a startup, ecommerce brand, or enterprise with complex data infrastructure, we help you stay compliant and protected.
Don’t wait for a lawsuit or regulatory fine to take privacy seriously. Contact Captain Compliance today for a free website scan and privacy audit so you can avoid the millions of dollars that TikTok and other companies are being fined for privacy violations.