TikTok agrees to $400 million settlement with US over children’s privacy
The lawsuit alleged that TikTok and its Chinese parent company, ByteDance, breached the Children’s Online Privacy Protection Act (COPPA).
TikTok has agreed to pay $400 million to resolve a lawsuit brought by the US Department of Justice over alleged violations of federal laws protecting children's online privacy.
Under the agreement announced yesterday (21 August), TikTok will provide $300 million upfront, while the remaining $100 million will be paid after an earlier consent order involving the company's predecessor, Musical.ly, is formally withdrawn.
US Associate Attorney General Stanley E. Woodward Jr. described the agreement as an important achievement for children and their parents. He said the settlement reinforces the government's efforts to ensure that companies handling children's personal information comply with federal requirements.
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The case dates back to a 2024 DOJ lawsuit. Since then, TikTok has experienced significant changes, particularly concerning the ownership of its US operations. In January, the company reached agreements with investors including Oracle, Silver Lake and Abu Dhabi-based MGX to establish a new joint venture for TikTok's American business.
TikTok did not immediately respond to requests for comment yesterday (21 August).
The lawsuit alleged that TikTok and its Chinese parent company, ByteDance, breached the Children's Online Privacy Protection Act (COPPA). The federal law requires websites and apps aimed at children to obtain parental permission before collecting personal information from users younger than 13.
Federal officials also accused the companies of failing to properly respond when parents asked for their children's accounts to be removed. In some cases, the government alleged, TikTok continued maintaining accounts even after learning that they belonged to children under 13.
The settlement comes amid increasing scrutiny of social media companies over the safety and privacy of young users. Governments in several countries are introducing restrictions on children and teenagers accessing social media platforms, while technology companies face a growing wave of legal challenges.
Meta Platforms, the parent company of Instagram, is also facing a federal trial in Oakland, California. That case involves allegations that Meta violated COPPA and several state laws related to children's privacy.
