TikTok to Pay $400 Million to Resolve U.S. Child Privacy Case

ByteDance-owned TikTok has agreed to pay $400 million to settle a U.S. government lawsuit alleging that the platform violated federal child privacy requirements, the Department of Justice announced.

Under the agreement, TikTok will pay $300 million immediately. The remaining $100 million is due after a court enters an order vacating an earlier consent decree involving Musical.ly, the predecessor to TikTok.

Government allegations

The lawsuit, filed by the Justice Department and the Federal Trade Commission in August 2024, accused TikTok and ByteDance of allowing children younger than 13 to open accounts and collecting personal information from children using the service’s “Kids Mode.” The complaint also alleged that the companies failed to consistently honor parents’ requests to remove children’s accounts and associated data.

Authorities described the case as involving large-scale privacy violations under the Children’s Online Privacy Protection Act, or COPPA. The Justice Department called the settlement one of the largest federal recoveries connected to the law.

TikTok disputed the government’s claims when the case was filed, saying that many allegations concerned historical practices and were either inaccurate or had already been addressed.

Measures for younger users

The Justice Department said TikTok has introduced broader safeguards as part of its efforts to protect younger users. Those changes reportedly include stronger age-related controls, improved account protections and expanded tools for parental oversight.

Associate Attorney General Stanley E. Woodward Jr. said the agreement would provide a substantial financial recovery while reinforcing companies’ obligations to protect children’s personal information online.

Previous regulatory action

The settlement follows other regulatory scrutiny involving TikTok’s handling of children’s data. In September 2023, Ireland’s data protection authority imposed a €345 million fine on the company over alleged violations of the European Union’s General Data Protection Regulation related to children’s privacy.

TikTok has also faced broader U.S. regulatory uncertainty. Earlier this year, a U.S. joint venture arrangement enabled the platform to continue operating in the country under legislation requiring either divestiture or a ban, after the law was upheld by the Supreme Court.