Hyundai to pay $200 million in damages over TikTok dispute

In a bid to end class action lawsuits, the company reached an agreement to compensate around 9 million owners of “Hyundai” and “Kia” cars manufactured between 2011 and 2022, including models such as “Tucson”, “Santa Fe” and “Elantra”. “, According to a press release from the company.

Dubbed the “Kia Challenge”, the TikTok challenge began on the popular platform in 2022, after thieves known as “Kia Boys” showed in a video how to force start certain cars using with a USB cable.

The number of thefts has increased considerably, and “the phenomenon has resulted in at least 14 traffic accidents and 8 deaths”, according to the US Highway Safety Agency.

In February, the authority announced that Hyundai and Kia would cover the costs of an anti-theft program by providing millions of cars with free immobilizers.

Under the agreement revealed on Thursday, the automaker will pay compensation to consumers whose car is stolen or damaged and who did not receive compensation under their insurance policies, including related premium increases.

TikTok, which is owned by Chinese group ByteDance, is struggling in the United States as many lawmakers on the right and left have called for the app to be banned in the country.

They accuse TikTok of manipulating and spying on users on behalf of the Chinese system, which the company has always denied.

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The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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