TikTok and ByteDance Agree to $400 Million Settlement Over US Children's Privacy

TikTok and its parent company, ByteDance, reached a $400 million settlement with the US Department of Justice on Friday, August 21, to resolve allegations that the platform illegally collected data from children. The lawsuit, filed in 2024, alleged that the company violated the Children's Online Privacy Protection Act (COPPA) by failing to obtain parental consent for users under age 13 and collecting personal information such as email addresses, phone numbers, and location data. The Department of Justice described the settlement as one of the largest ever obtained in a COPPA case.

Under the terms of the agreement, TikTok will make an immediate payment of $300 million. An additional $100 million will be paid upon the vacating of a 2019 consent decree with the Federal Trade Commission involving Musical.ly, the app ByteDance acquired and merged into TikTok. The 2019 order had previously fined the company $5.7 million for failing to get parental consent for young users.

TikTok has stated that many of the allegations refer to past practices that were factually inaccurate or have already been resolved. The company and the government noted that TikTok has since implemented changes to its privacy practices, including age moderation systems, requiring users to enter their date of birth, and increasing parental supervision tools. Additionally, ByteDance has moved toward a majority American owned joint venture for its US assets to secure data and avoid a potential ban.

Center outlets focused on the legal specifics and the broader trend of lawsuits against tech companies regarding child safety. Center left outlets emphasized the failure to obtain parental consent and the specific role of the US Justice Department in ensuring legal obligations are met.