TikTok to pay $400 million to US in one of largest child privacy settlements

TikTok and its parent company, ByteDance, have agreed to a $400 million settlement with the U.S. Department of Justice, resolving allegations of violating federal child privacy laws. This significant agreement stems from a 2024 lawsuit filed by the Justice Department and the Federal Trade Commission, which accused the popular video-sharing platform of illegally collecting personal data from children under 13 without obtaining parental consent, a breach of the Children's Online Privacy Protection Act (COPPA). The settlement amount is among the largest ever secured in a COPPA-related case.

Under the terms of the settlement, TikTok will pay $300 million immediately, with an additional $100 million to follow once a prior consent decree against its predecessor app, Musical.ly, is vacated. The lawsuit had highlighted that TikTok allegedly allowed young users to create accounts and gather personal information, even in "Kids Mode," without proper parental notification or approval.

Since the initial litigation, TikTok has reportedly implemented substantial changes to its ownership, management structure, and privacy safeguards to enhance protections for younger users. These measures include improved age verification processes and strengthened parental oversight functionalities, aiming to address the concerns raised by the U.S. government regarding online child safety.