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TikTok Agrees to $400 Million Settlement Over Children's Privacy

Payment terms require $300 million now with $100 million tied to a 2019 FTC order, signaling tougher enforcement of U.S. child-privacy rules.

Overview

  • A settlement announced Friday resolves the Justice Department's 2024 lawsuit and calls for a $400 million payment from TikTok and parent ByteDance.
  • The deal directs $300 million to be paid immediately and makes an extra $100 million contingent on a court action tied to a 2019 FTC order involving Musical.ly.
  • The DOJ alleged in its 2024 complaint that TikTok allowed users under 13 to register and collected contact and location data without parental consent in violation of COPPA.
  • TikTok has said many problems were historical or already fixed and the company has added stronger age controls and parental supervision tools since the suit was filed.
  • Officials describe the payment as one of the largest COPPA recoveries and legal observers say the agreement could shape how regulators press platforms to verify age and protect children online.