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[TECHNOLOGY] · United States · 53 sources

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

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 2024 lawsuit alleged that TikTok collected personal data from millions of users under the age of 13 without obtaining required parental consent.

The financial settlement is structured in two parts: an immediate payment of $300 million and a subsequent $100 million payment once a court vacates a prior consent decree involving Musical.ly, TikTok’s predecessor. The agreement does not require TikTok or ByteDance to admit to any wrongdoing.

The Department of Justice noted that TikTok has implemented significant changes to its ownership structure, management, and privacy practices since the litigation began. This includes a transition to a U.S.-based joint venture involving investors such as Oracle and Silver Lake to oversee its American operations.

Entities

ByteDance · Musical.ly · Oracle · TikTok · U.S. Department of Justice

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