TikTok and ByteDance to pay $400 million to settle US child privacy lawsuit
The settlement resolves allegations that the platform violated the Children's Online Privacy Protection Act.
Quick Look
TikTok and parent company ByteDance have agreed to a $400 million settlement with the US Justice Department over allegations of violating children's online privacy laws, marking one of the largest recoveries under the Children's Online Privacy Protection Act.
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Why It Matters
The Children's Online Privacy Protection Act (COPPA) is a federal law requiring online services to obtain parental consent before collecting personal data from minors. TikTok has faced multiple international probes regarding its compliance with child safety regulations.
TikTok and its Chinese parent company ByteDance agreed on Friday to pay $400 million (roughly €342 million) to resolve allegations by the US Justice Department that the platform violated children's online privacy laws.
"Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly," the department said in a statement.
It's "one of the largest recoveries ever obtained" from a case involving the Children's Online Privacy Protection Act (COPPA), a federal law which safeguards online privacy of minors, the statement added.
What was TikTok accused of?
The Justice Department and the Federal Trade Commission sued TikTok and ByteDance in 2024, alleging that the platform put children's privacy at risk.
The agencies accused TikTok of knowingly allowing children to use the platform and violating federal law that online services directed at children obtain parental consent before collecting their personal data.
The Justice Department said that since the lawsuit was filed, TikTok has "undergone significant changes to its ownership, management, compliance functions and privacy practices" concerning younger users.
TikTok parent company ByteDance sold off a majority stake of its US entity earlier this year in order to avoid a ban by the Trump administration.
TikTok did not immediately comment on the settlement.
TikTok faces growing global scrutiny
The settlement comes as TikTok, alongside other social media platforms, faces increasing pressure around the world.
In 2024, Brussels launched a probe into TikTok under the Digital Services Act (DSA) — a landmark regulation that the European Union has used to curb harmful practices by Big Tech in recent years.
The video-sharing platform risks a large fine after the EU accused TikTok in July of failing to protect children through account settings that can expose them to risks such as "unwanted contact, cyberbullying, or predatory behavior."
The United Kingdom also launched a probe into TikTok in July to investigate whether the app is doing enough under UK law to protect children from harmful content.
Open Questions
- Will the settlement impact TikTok's user growth in the US?
- How will the EU probe conclude?
