TikTok Agrees $400 Million US Children Privacy Settlement

WASHINGTON: (News Desk) – TikTok has agreed to pay $400 million to resolve a US government lawsuit alleging that the video-sharing platform violated federal privacy protections for children, the US Justice Department announced Friday.

The settlement places TikTok and its parent company, ByteDance, under renewed scrutiny as regulators worldwide intensify efforts to hold social media platforms accountable for how they collect, use and protect children’s personal information.

Under the agreement, TikTok will pay $300 million immediately, with another $100 million due once a court enters an order vacating an earlier consent decree involving TikTok’s predecessor, Musical.ly, according to the Justice Department.

US officials described the settlement as one of the largest financial recoveries involving the Children’s Online Privacy Protection Act (COPPA). The federal law generally prohibits online services from collecting personal information from children under 13 without verified parental consent.

The Justice Department and Federal Trade Commission sued TikTok in 2024, accusing the platform of allowing children to use the service while collecting personal information without adequately informing or obtaining permission from their parents.

The lawsuit alleged that even TikTok’s child-focused “Kids Mode” collected information such as email addresses and other personal data from young users.

The case also follows a 2019 COPPA action against Musical.ly, which ByteDance acquired in 2017 before combining the service with TikTok.

TikTok had not immediately issued a public response to the settlement.

The agreement comes as governments in several major markets increase pressure on TikTok over children’s online safety and privacy.

In the European Union, regulators opened a Digital Services Act investigation into TikTok in 2024. In July, the European Commission said TikTok’s account settings could expose minors to risks including cyberbullying and predatory behavior. The company could face a significant penalty if the EU’s concerns are confirmed.

EU officials have argued that strong privacy and safety settings for minors should be enabled automatically rather than requiring children to activate them themselves.

Meanwhile, Britain’s communications regulator Ofcom opened its own investigation in July into whether TikTok is meeting its legal responsibilities to protect children from harmful content. The inquiry will also examine the platform’s approach to verifying users’ ages.

The growing regulatory pressure highlights the increasing legal risks facing social media companies as governments seek stronger safeguards for children online.