TikTok to Pay $400 Million to Settle US Children's Privacy Lawsuit
TikTok agrees to a $400 million settlement with the US Justice Department over allegations it violated children's privacy laws.
The US Department of Justice (DOJ) announced on Friday that TikTok has agreed to pay $400 million to resolve a 2024 lawsuit. The case alleged that the social media platform and its parent company, ByteDance, breached federal laws designed to protect children's online privacy.
The settlement will see TikTok pay $300 million immediately, with the remaining $100 million due after a court order formally vacates an earlier consent decree against Musical.ly, the app's predecessor company.
US Associate Attorney General Stanley E. Woodward Jr. called the settlement a significant win for families. He stated that the department's priority is safeguarding children online and ensuring companies handling their personal data comply with legal standards. He added that the resolution secures substantial recovery while reinforcing the protections families expect.
The original lawsuit focused on claims that TikTok and ByteDance violated the Children's Online Privacy Protection Act (COPPA). This law requires apps and websites aimed at children to obtain parental consent before collecting personal information from users under 13. The DOJ also alleged that the companies failed to act on parental requests to delete children's accounts and did not remove accounts even when they knew the users were underage.
Since the lawsuit was filed, TikTok's US operations have undergone significant restructuring. In January, the company signed agreements with major investors, including Oracle, Silver Lake, and the Emirati firm MGX, to form a new joint venture for its American business.
TikTok representatives did not immediately respond to requests for comment on Friday.
The settlement comes amid a broader wave of legal challenges facing social media companies over child safety and privacy. Meta Platforms, the parent company of Instagram, is currently facing trial in a federal court in Oakland, California, over similar allegations related to COPPA and state laws.