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TikTok and ByteDance settle US children privacy lawsuit for $400 million
The settlement requires TikTok to pay $300 million immediately, with an additional $100 million contingent on a court vacating a 2019 consent decree.
TikTok and its Chinese parent ByteDance have agreed to pay $400 million to settle a US Justice Department lawsuit accusing the video-sharing app of violating children’s online privacy rules, resolving a major federal case while TikTok’s US operations remain politically scrutinized, according to SCMP Economy.
The government alleged that TikTok and ByteDance collected personal information from children under 13 without obtaining parental consent, a claim tied to the Children’s Online Privacy Protection Act, or COPPA. The case stemmed from allegations brought in 2024 by the Justice Department and the US Federal Trade Commission.
Under the agreement, TikTok will pay $300 million immediately and another $100 million if a court vacates a previous consent decree entered in 2019 against Musical.ly, TikTok’s predecessor. The Justice Department said the deal is one of the largest recoveries ever obtained in a COPPA case.
Associate Attorney General Stanley Woodward said the department’s priority is protecting children online and ensuring companies responsible for personal information meet their legal obligations. The settlement was announced on Friday.