TikTok reaches $400 million settlement with U.S. DOJ over children's privacy

TikTok has reached a $400 million settlement with the U.S. Department of Justice to resolve allegations that the company and its parent, ByteDance, violated federal children’s privacy laws. The settlement addresses claims that the platform failed to obtain parental consent before collecting personal information from users under 13 and did not honor requests to delete accounts belonging to children.

Under the terms of the agreement, TikTok will pay $300 million immediately. The remaining $100 million is contingent upon a judge vacating a 2019 consent decree originally issued against Musical.ly, TikTok’s predecessor. The DOJ has filed a motion to unwind this previous decree, arguing that changes in ownership and new compliance systems make its continued enforcement unnecessary. A hearing regarding this motion is scheduled for September 21.

The settlement follows significant structural changes at TikTok, including the formation of a new U.S. joint venture involving investors such as Oracle, Silver Lake, and MGX. U.S. Associate Attorney General Stanley E. Woodward Jr. characterized the resolution as a “major victory for American children and parents,” emphasizing the importance of reinforcing online protections for families.