TikTok to pay $400m settlement in US children's privacy case

SAN FRANCISCO -- TikTok has agreed to pay $400 million to settle a lawsuit with the U.S. Department of Justice over claims that the video-sharing platform violated federal children’s privacy laws, the department announced on Friday. The settlement follows allegations that TikTok collected personal data from children under 13 without parental consent, exposing millions of young users to potential harm. The agreement includes an immediate payment of $300 million and an additional $100 million once a court orders the vacating of a previous consent decree related to TikTok’s predecessor, Musical.ly. This marks one of the largest recoveries ever obtained under the Children's Online Privacy Protection Act, which prohibits websites from gathering personal information from children younger than 13 without parental permission. The Justice Department and Federal Trade Commission jointly sued TikTok in 2024, accusing the company of endangering children by collecting and using their data without informing parents. The suit alleged that even accounts created in a “Kids Mode” for users under 13 were collecting email addresses and other personal information. ByteDance, the Chinese parent company of TikTok, is also named in the settlement. It holds a 19.9 percent ownership stake in TikTok US, according to U.S. media reports. Earlier this year, ByteDance sold off a majority stake in its U.S. entity to avoid a potential ban by the Trump administration. The company has faced increasing scrutiny globally over data practices and child safety protocols. The U.S. government’s action comes after a long history of regulatory attention toward TikTok. In 2019, the U.S. filed a COPPA lawsuit against Musical.ly, an app purchased by ByteDance in 2017 and later integrated into TikTok. The case highlighted concerns over how the platform handled user data, especially among minors. TikTok did not immediately respond to requests for comment following the announcement. The settlement reflects broader efforts by governments worldwide to hold tech companies accountable for safeguarding children’s data and online experiences. In Brussels, authorities initiated a probe into TikTok in 2024 under the Digital Services Act, a key component of the EU’s strategy to regulate big technology firms. The act empowers regulators to impose substantial fines on platforms that fail to protect users, particularly minors. In July, the European Union accused TikTok of inadequate safeguards, citing account settings that could expose children to cyberbullying and predatory behavior. The EU emphasized that minors’ accounts should only be visible to those they explicitly permit, and that children aged 13 and older can use the platform. A senior EU tech official stated that robust protection should be the default setting rather than requiring users to opt in. The EU’s preliminary findings suggest that TikTok’s current settings fall short of these standards. Similarly, Britain’s communications regulator, Ofcom, launched an investigation into TikTok in July, focusing on whether the company meets its legal obligations to protect children from harmful content. The inquiry will examine TikTok’s age-verification processes and overall compliance with UK law. Ofcom noted that the probe aims to determine if there are sufficient reasons to believe TikTok has failed or is failing to uphold its responsibilities. These actions underscore a growing international consensus that social media platforms must prioritize child safety and transparency. As regulatory bodies intensify their oversight, companies like TikTok face mounting pressure to align their policies with evolving legal frameworks designed to shield young users from digital risks. The outcome of these investigations and settlements may shape future regulations and corporate strategies in the tech industry.