TikTok has agreed to pay $400 million to the US government to settle allegations that the platform violated federal children’s privacy laws, making it one of the largest US settlements involving the protection of children’s online data.
The agreement stems from a 2024 lawsuit filed by the US Department of Justice during the administration of former President Joe Biden. The case accused TikTok and its parent company, ByteDance, of collecting large amounts of personal information from millions of users under the age of 13 without obtaining the required parental consent.
The alleged conduct violated the Children’s Online Privacy Protection Act, or COPPA, a federal law introduced in 2000 to protect children’s personal information online.
“Children and parents are better protected today than they were when this case began,” Assistant Attorney General Brett Shumate said.
Under the settlement, TikTok and ByteDance will pay $300 million to the Justice Department immediately. A further $100 million will be paid after the government secures an order vacating a 2019 consent decree involving Musical.ly, the predecessor to TikTok.
Musical.ly, which ByteDance acquired before merging it with TikTok, had previously agreed to pay $5.7 million to settle allegations that it violated COPPA. The company was also required to obtain parental permission for users under 13.
The latest case accused TikTok of failing to properly determine the ages of users and allowing children to access the platform without effective parental consent.
The settlement comes amid wider US scrutiny of social media companies over the treatment of young users. Google’s YouTube paid $170 million in 2019 to settle COPPA allegations, while Epic Games agreed to pay $275 million in 2022.
Meta is also facing a major legal challenge involving allegations that Facebook and Instagram violated children’s privacy protections. Attorneys general from 29 US states have brought the case, which could result in substantial penalties if the company is found liable.
The TikTok case was filed before the restructuring of the company’s US operations last year. Under the new ownership arrangement, a group of investors holds about 81% of TikTok’s US business, while ByteDance retains a 19% stake.
The Justice Department said TikTok had undergone significant changes since the lawsuit was filed, including changes involving ownership, privacy practices and controls designed to protect younger users.
The dispute also follows years of political pressure over TikTok’s ownership and its links to China. Biden had pushed for the company to be banned or separated from ByteDance, while President Donald Trump later supported a divestment of the US business.
ByteDance, a privately held company, was recently valued by investors at about $550 billion.
TikTok did not immediately respond to requests for comment on the settlement.
