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[BUSINESS] · United States · 27 sources

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TikTok to pay $400 million to settle U.S. children's 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 of violating the Children’s Online Privacy Protection Act (COPPA). The lawsuit, filed in 2024, alleged that the platform knowingly allowed millions of children under the age of 13 to create accounts and collected their personal data without verifiable parental consent.

The settlement is structured in two phases: an immediate payment of $300 million, followed by an additional $100 million once a court vacates a previous 2019 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.

As part of the resolution, TikTok has implemented enhanced safeguards, including improved age-related controls and increased parental oversight. While the companies will pay the substantial fine, the agreement does not require TikTok or ByteDance to 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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