TikTok to pay $400 million to settle US child privacy lawsuit
The settlement resolves a 2024 Department of Justice suit alleging violations of the Children’s Online Privacy Protection Act, with payments linked to the vacating of a prior consent decree.
TikTok has agreed to pay $400 million to settle a lawsuit filed by the US Department of Justice (DOJ) in 2024. The suit alleged that the short-video platform violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from users under the age of 13 without obtaining parental consent. The DOJ also claimed that TikTok failed to delete accounts when parents made specific requests.
The settlement structure involves an immediate payment of $300 million. A further $100 million is payable upon the entry of an order vacating a prior consent decree entered against TikTok’s predecessor, Musical.ly. In 2019, Musical.ly paid $5.7 million to settle similar COPPA allegations and committed to preventing children under 13 from creating accounts. The 2024 lawsuit alleged that TikTok continued to struggle with identifying and removing underage users despite internal concerns.
The DOJ described the deal as one of the “largest recoveries ever obtained in a COPPA case.” The department noted that TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices since the lawsuit was filed. According to the DOJ, the company has implemented measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight.
The settlement comes after the deal to place TikTok under a new joint ownership structure in the US was finalised in January. This structural shift has been a key point of discussion regarding the platform’s regulatory standing and operational independence in the American market.
TikTok did not immediately reply to a request for comment regarding the specific terms of the settlement. The resolution marks a significant financial outcome for the company, which has faced ongoing scrutiny over its handling of children’s data and its broader corporate governance in the US.
The case highlights the continued regulatory focus on digital privacy and the obligations of major technology firms to protect younger users. For investors and institutions, the settlement underscores the potential financial exposure associated with compliance failures in the rapidly evolving digital landscape.
