TikTok agrees to pay $400 million to settle US children's privacy lawsuit

TikTok has settled a U.S. children's privacy lawsuit by agreeing to pay $400 million, according to the U.S. Justice Department. Under the terms of the agreement, TikTok will immediately pay $300 million and an additional $100 million once a court orders the vacating of a previous consent decree related to its former subsidiary, Musical.ly. The settlement follows a lawsuit filed by the DOJ and the Federal Trade Commission in 2024, which alleged that the app had improperly collected personal data from children without parental consent. The lawsuit claimed that even accounts created in a "Kids Mode" intended for users under 13 had gathered email addresses and other personal information. This comes amid ongoing regulatory scrutiny of the social media platform, particularly regarding its handling of user data. The case traces back to 2019, when the U.S. government filed a Children's Online Privacy Protection Act (COPPA) lawsuit against Musical.ly, the precursor to TikTok. At the time, Musical.ly was owned by the Chinese tech giant ByteDance, which later acquired the company and integrated it into TikTok. In 2017, ByteDance purchased Musical.ly, marking the beginning of its expansion into the global social media market. The COPPA lawsuit was initiated because Musical.ly allegedly violated regulations requiring websites to secure verifiable parental consent before collecting personal information from children under 13. The case remained unresolved until the DOJ and FTC joined forces in 2024 to bring new charges against TikTok, citing continued violations of privacy laws despite the company's restructuring. According to the DOJ, TikTok has made significant improvements to its privacy policies and internal systems since the 2024 lawsuit was filed. The agency stated that the company has implemented numerous measures aimed at strengthening safeguards for younger users, improving age verification processes, and enhancing parental control features. These changes were described as part of broader efforts to align TikTok with U.S. privacy standards and ensure greater transparency in how user data is handled. Associate Attorney General Stanley Woodward Jr. praised the settlement as a "major victory for American children and parents." He emphasized that the agreement ensures a substantial financial recovery while reinforcing the kind of protections that families expect. The DOJ also highlighted that the company has undergone notable changes in its leadership, operational structure, and compliance mechanisms, all of which have contributed to improved data protection protocols. The DOJ did not provide further details on the specific nature of the $100 million payment tied to the vacating of the earlier consent decree. However, it stressed that the settlement reflects the company's commitment to addressing past shortcomings and adhering to legal requirements. Euronews has contacted TikTok for a response but has yet to receive a formal statement from the company. Looking ahead, the settlement may serve as a precedent for future regulatory actions targeting technology companies that fail to comply with child privacy laws. It also underscores the growing pressure on social media platforms to prioritize user safety and transparency, especially in light of increasing concerns over digital privacy and data security. As the U.S. continues to monitor the implementation of these reforms, the outcome could influence how similar cases are handled in the future.