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[TECHNOLOGY] · United States · 100 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 that the platform violated the Children’s Online Privacy Protection Act (COPPA). The lawsuit, filed in 2024, accused the company of collecting and retaining personal data from millions of users under the age of 13 without obtaining verifiable parental consent.

Under the terms of the agreement, TikTok will pay $300 million immediately. An additional $100 million will be paid once a court vacates a previous consent decree involving Musical.ly, a predecessor to TikTok. The settlement does not include an admission of wrongdoing by TikTok or ByteDance.

Since the initial lawsuit was filed, TikTok has undergone significant structural changes, including shifts in ownership, management, and privacy compliance. This includes the formation of a new U.S.-based joint venture involving investors such as Oracle, Silver Lake, and MGX to manage its American operations. The company has also implemented enhanced safety measures, such as improved age verification and expanded parental controls, to protect younger users.

Entities

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

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