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[BUSINESS] · United States · 34 sources

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TikTok to pay $400 million to settle U.S. child privacy lawsuit

TikTok and its parent company, ByteDance, have agreed to a $400 million settlement with the U.S. Department of Justice to resolve allegations that the platform violated the Children’s Online Privacy Protection Act (COPPA). The lawsuit, filed in 2024, alleged that TikTok knowingly allowed millions of children under the age of 13 to create accounts and collected their personal data, including email addresses and phone numbers, without verifiable parental consent.

The settlement is structured in two phases: an immediate payment of $300 million and an additional $100 million once a court vacates a previous consent decree involving Musical.ly, TikTok’s predecessor. The Department of Justice described the agreement as one of the largest recoveries ever obtained in a COPPA-related case.

Under the terms of the agreement, TikTok will implement enhanced safeguards for young users, including improved age-related controls and increased parental oversight. While the settlement resolves the litigation, the companies do not admit to any wrongdoing.

Entities

ByteDance · Federal Trade Commission · Musical.ly · Stanley E. Woodward Jr. · TikTok · U.S. Department of Justice

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