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2d ago

TikTok Agrees to $400 Million Settlement in U.S. Child Privacy Case

The deal ends the DOJ’s federal COPPA lawsuit with $300 million paid now and $100 million payable if a court vacates a 2019 Musical.ly consent decree, signaling DOJ acceptance of TikTok’s new U.S. ownership and compliance reforms.

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FILE - The TikTok logo is displayed on a mobile phone in front of a computer screen, Oct. 14, 2022, in Boston. (AP Photo/Michael Dwyer, File)
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TikTok and ByteDance to pay $558 million over alleged child privacy violations. (Mick Tsikas/AAP PHOTOS & AP PHOTO)

Overview

  • The Department of Justice announced Friday that TikTok and parent ByteDance will pay $400 million to resolve a 2024 suit alleging violations of the Children’s Online Privacy Protection Act.
  • Under the agreement TikTok will pay $300 million immediately and another $100 million only after a court formally vacates the 2019 FTC consent decree against Musical.ly.
  • The 2024 complaint said TikTok allowed users under 13 to create regular accounts and collected their personal data without verifiable parental consent, which COPPA requires platforms to obtain.
  • DOJ said it credited TikTok’s January shift to a majority U.S. ownership structure and upgrades to age checks, moderation staff, and compliance systems when agreeing to the settlement, and the deal resolves the federal case without a finding of liability.
  • Separate state lawsuits and international probes, including EU and UK investigations into children’s protections, remain active and could still bring further penalties or oversight changes.