ByteDance, TikTok resolve US child privacy row with $400 million settlement

TikTok and ByteDance, its Chinese parent company, have reached a $400 million settlement to resolve US Justice Department allegations of violating children's online privacy laws. The lawsuit, filed in 2024, accused the companies of failing to protect children's privacy and unlawfully collecting personal information from users under the age of 13.

The case focused on claims that TikTok and ByteDance breached a US law mandating parental consent before collecting data from children. Associate Attorney General Stanley Woodward emphasized the department's commitment to protecting children online and ensuring companies comply with legal obligations. The settlement requires TikTok to pay $300 million upfront and an additional $100 million once a court vacates a prior consent decree with the Federal Trade Commission from 2019, related to Musical.ly, TikTok's predecessor.

The FTC previously alleged that Musical.ly collected data from young children without obtaining parental consent, resulting in a $5.7 million penalty. The latest agreement follows significant changes to TikTok's US operations, including the establishment of a majority American-owned joint venture to secure US user data and prevent a potential nationwide ban.

TikTok has implemented new ownership, management, compliance systems, and privacy practices since the initial complaint. The company now requires users to provide their date of birth before accessing the platform and has developed age-moderation systems to identify and remove accounts of children under 13 who have falsely stated their age.