TikTok to pay US$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 Federal Trade Commission agreement.
TikTok and its parent company, ByteDance, have agreed to pay US$400 million to settle a lawsuit brought by the US Department of Justice (DoJ) alleging violations of the Children’s Online Privacy Protection Act (COPPA). The DoJ described the agreement as one of the largest recoveries ever obtained for a COPPA-related case, marking a significant resolution to a dispute that has persisted since 2024.
The lawsuit, originally filed under the Biden administration, alleged that TikTok violated the terms of an earlier Federal Trade Commission (FTC) settlement related to its acquisition of Musical.ly. The DoJ claimed the platform allowed children under 13 to create accounts and improperly collected data from users in “Kids Mode.” Additionally, the department accused the company of frequently failing to comply with parental requests to delete children’s data.
Under the settlement terms, TikTok will pay US$300 million immediately. A further US$100 million is payable after the company’s prior agreement with the FTC is vacated. The DoJ noted that TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices since the lawsuit was filed.
These changes include the creation of the TikTok USDS Joint Venture, a new entity for the company’s US business controlled by investors including Oracle, Silver Lake, and MGX. ByteDance retained a 19.9 per cent stake in the venture. The DoJ stated that the company has implemented extensive measures to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight.
The settlement follows years of intense scrutiny over TikTok’s privacy practices and ties to China. Earlier this month, the Office of Management and Budget cleared the way for federal workers to use the app on government-issued devices, reversing a 2022 ban. TikTok and ByteDance did not immediately respond to a request for comment regarding the settlement terms.
