TikTok Updates Terms Amid U S Ownership Shift

When millions of Americans opened TikTok on January 23, 2026, they were greeted with a familiar but weighty sight: a pop-up demanding agreement to new Terms of Service. There was no option to decline—not if users wanted to keep scrolling, posting, or simply lurking on the video-sharing giant. The timing was no accident. As reported by Mashable and The Express Tribune, the change arrived alongside a seismic shift in TikTok’s U.S. operations—a transition that’s been brewing for years and now, finally, has come to a head.

After months of high-stakes negotiations, originally brokered by former President Trump, TikTok’s American business spun off into a new entity: TikTok USDS Joint Venture LLC. This new company, according to reporting by Mashable, is majority-owned by American investors, a stark departure from the previous structure under Chinese parent company ByteDance. The move is designed to address long-standing national security concerns and comply with state-level privacy mandates, notably the California Consumer Privacy Act (CCPA) and Washington’s My Health My Data Act.

But what does this mean for the average TikTok user? For many, the answer came buried in the legalese of the app’s updated Terms of Service and Privacy Policy. As users scrolled through—some more carefully than others—questions and anxieties bubbled up across social media. The new policies, effective January 22, 2026, explicitly allow TikTok to collect precise location data, provided users haven’t opted out. This marks a notable shift in transparency, if not in actual practice.

“NO ONE is talking about TikTok’s latest update on their terms and services,” wrote one user on X, echoing a wave of concern that soon spread. Many pointed to language about the collection of sensitive personal information—immigration status, religious affiliation, race, gender identity, and medical diagnoses. Others zeroed in on the new, explicit references to geolocation tracking. According to Mashable, these details were already part of TikTok’s data collection arsenal, but the latest update spells them out with greater clarity.

The previous privacy policy, archived on December 1, 2025, already stated that TikTok could collect sensitive information disclosed in user content, survey responses, or interactions on the platform. The new language, as of January 22, 2026, reads: “Information You Provide may include sensitive personal information, as defined under applicable state privacy laws, such as information from users under the relevant age threshold, information you disclose in survey responses or in your user content about your racial or ethnic origin, national origin, religious beliefs, mental or physical health diagnosis, sexual life or sexual orientation, status as transgender or nonbinary, citizenship or immigration status, or financial information.”

What’s different now? For one, TikTok is more upfront about its ability to collect precise location data. “We may also collect precise location data, depending on your settings and as explained below,” the new policy states. This addition, as The Express Tribune notes, is a significant clarification, even if the practice itself isn’t entirely new.

Another subtle, but important, change: TikTok’s policy now explicitly covers content created with generative AI tools. The company reserves the right to scan user-generated content—including posts, comments, livestreams, audio messages, and even virtual items—whether they’re published or still in the “pre-uploading” stage. This scanning extends to content anonymized by filters or altered by generative AI. According to Mashable, this is how TikTok can recommend trending audios or generate hashtags while a user is still editing a post. The new policy brings generative AI content into the fold, aligning with TikTok’s existing Community Guidelines and AI labeling rules introduced in 2023 and expanded in November.

With the rise of AI-generated content, TikTok has introduced new rules prohibiting the use of AI bots to interfere with the app’s own AI tools. Misleading or unlabeled generative AI content is now explicitly banned. This move, reported by Mashable, is meant to curb the spread of deceptive media and ensure users can trust what they see on their For You page—at least, that’s the hope.

Advertising is another area seeing a shift. The new policies expand TikTok’s advertising language, allowing for “customized ads and other sponsored content” from third parties, even outside the app. This is a step beyond the previous focus on in-app personalized advertising. As The New York Times and The Express Tribune highlighted, this could mean TikTok user data now powers ads across the broader web, not just within the app’s borders.

Of course, all this comes amid a swirl of anxiety over surveillance and content moderation. Some longtime users have announced their intention to leave the platform, citing fears of increased government oversight and a shift in content recommendations toward more U.S.-centric aims. As Mashable observed, “The concerns aren’t entirely off the mark,” especially given the federal scrutiny TikTok has faced over its “foreign influences” and data collection practices.

Yet, for all the noise, the actual scope of TikTok’s data collection hasn’t changed dramatically. Both the old and new policies allow the company to gather sensitive information—provided users volunteer it—whether through content, surveys, or other interactions. The company insists it processes this information “in accordance with applicable law, such as for permitted purposes under the California Consumer Privacy Act.” That means, at least on paper, TikTok is playing by the rules set by state and federal regulators.

Still, the devil is in the details. TikTok’s ability to scan content before it’s ever published, or to see through face and voice filters, may come as a surprise to many. The fact that these practices now extend to generative AI content only underscores how quickly the digital landscape is evolving. And while users can theoretically opt out of precise location tracking, the process isn’t always straightforward—and many may not even realize it’s happening.

For TikTok, the stakes are high. The company is walking a tightrope between satisfying American lawmakers, appeasing privacy advocates, and keeping its massive user base happy (or at least, not too disgruntled). The new ownership structure and policy updates are, in many ways, an attempt to thread that needle. But as the dust settles, it’s clear that the debate over data privacy, government oversight, and the future of social media is far from over.

As users weigh their options—agree to the new terms or walk away—one thing is certain: TikTok’s latest update is more than just a legal formality. It’s a window into the ongoing tug-of-war over who controls our data, and what that means for the future of digital life in America.