TikTok to pay US$400m to settle child privacy lawsuit
The settlement resolves a 2024 lawsuit alleging the platform collected data from children without parental consent, marking a significant institutional shift in how US authorities enforce digital privacy standards.
TikTok and its parent company, ByteDance, have reached a $400 million settlement with the US Department of Justice (DOJ) to resolve allegations that the platform violated the Children’s Online Privacy Protection Act (COPPA). The agreement, announced on Friday, addresses claims that the short-video app failed to obtain parental consent before collecting personal information from users under the age of 13.
The DOJ alleged that TikTok knowingly permitted children to create standard accounts, allowing them to share short-form videos and messages with adults on the regular platform. Under COPPA, services aimed at children are required to secure parental consent prior to gathering personal data. The lawsuit, originally filed in 2024, highlighted a gap between the platform’s internal safeguards and its legal obligations regarding underage users.
The financial structure of the resolution includes an immediate payment of $300 million to the DOJ. A further $100 million is contingent upon a court cancelling a previous settlement made with TikTok’s predecessor, Musical.ly. This earlier agreement, reached in 2019, saw Musical.ly pay $5.7 million to settle similar COPPA allegations, a precedent that the current dispute suggests was insufficient to prevent recurring issues.
Associate Attorney General Stanley E. Woodward Jr. described the resolution as a "major victory for American children and parents," emphasising the recovery of funds and the reinforcement of legal obligations for companies handling children’s data. He stated that the department’s priority is ensuring that companies entrusted with personal information meet their legal obligations, securing a substantial recovery while reinforcing protections for families.
Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division noted that the settlement reflects "substantial progress" and brings the matter to a "successful conclusion." The DOJ also observed that since the lawsuit was filed, TikTok has made "drastic changes" and strengthened its safeguards to protect children’s privacy, suggesting that the litigation process itself has driven institutional reform within the company.
The settlement occurs against a backdrop of broader regulatory scrutiny in the United States. In January, ByteDance agreed to create a majority US-owned joint venture to secure domestic data and avoid a potential ban on the app, which is used by more than 200 million Americans. Al Jazeera has reached out to TikTok for comment, but no response was included in the initial reporting.
