TikTok to pay $400 million to settle US child privacy lawsuit
TikTok and ByteDance have agreed to pay $400 million to resolve a 2024 lawsuit alleging violations of children's privacy protections. The Justice Department says the company has since significantly improved its privacy practices.
The US Department of Justice has announced a settlement with TikTok and its parent company ByteDance over a lawsuit alleging violations of children's privacy protections. The DoJ described the deal as one of the largest recoveries ever obtained in a case tied to the Children's Online Privacy Protection Act (COPPA).
The case originated from a 2024 lawsuit filed under then-President Joe Biden's administration. Prosecutors alleged TikTok had violated an earlier settlement with the Federal Trade Commission stemming from its acquisition of Musical.ly. The DoJ also accused the app of breaching COPPA by letting children under 13 create accounts and improperly collecting data from children using its "Kids Mode" feature. Additionally, the department said TikTok often failed to honor parents' requests to delete their children's data.
Corporate restructuring
Announcing the settlement, the Justice Department noted TikTok has undergone significant changes to its ownership, management, compliance functions and privacy practices since the suit was filed. Earlier this year, the company completed a deal creating a new entity for its US operations, TikTok USDS Joint Venture, controlled by a group of investors including Oracle, Silver Lake and MGX. ByteDance retained a 19.9 percent stake in the new company.
The DoJ said TikTok has implemented extensive measures to strengthen protections for younger users, improve age-related controls, and enhance parental oversight.
Payment terms
Under the settlement, TikTok will pay $300 million immediately, with an additional $100 million due once its earlier agreement with the FTC is vacated. TikTok and ByteDance did not immediately respond to a request for comment.
The settlement marks the latest development for a company that has faced years of scrutiny over its privacy practices and ties to China. Earlier this month, the Office of Management and Budget cleared federal employees to use TikTok again, following a 2022 law that had banned the app from most government devices.
