TikTok to Pay $300 Million Upfront in US Child Privacy Settlement

TikTok has agreed to pay $400 million to the US Department of Justice to resolve allegations that the short-video platform violated federal children’s privacy laws, bringing a 2024 lawsuit against the company to an end.

Under the settlement, TikTok will pay $300 million immediately, while the remaining $100 million will be paid after an order vacates an earlier consent decree involving its predecessor, Musical.ly.

The DOJ alleged that TikTok and its China-based parent company ByteDance violated the Children’s Online Privacy Protection Act (COPPA), which requires online services directed at children to obtain parental consent before collecting personal information from users under 13.

The lawsuit also accused the companies of failing to delete children’s accounts after parents requested their removal. Prosecutors alleged TikTok continued maintaining accounts even when it knew or had reason to believe they belonged to children under 13.

US Associate Attorney General Stanley E. Woodward Jr. described the settlement as a major victory for American children and parents, saying the agreement reinforces companies’ responsibility to protect children’s personal information online.

The settlement comes as social media platforms face growing regulatory and legal scrutiny over child safety, privacy and the impact of online services on young users. Several countries have introduced or considered restrictions aimed at limiting children’s access to social-media platforms.

TikTok has also undergone significant changes since the lawsuit was filed. In January, the company signed agreements with Oracle, Silver Lake and Emirati investment firm MGX to establish a new joint venture overseeing its US operations, marking a major shift in the ownership structure of TikTok’s American business.

TikTok representatives did not immediately comment on the settlement.

The case highlights the increasing legal risks facing technology companies over children’s digital privacy. Meta Platforms, the parent company of Instagram, is separately facing a federal trial in California over allegations that it violated COPPA and various state laws protecting children online.