Scoop: DOJ, TikTok settle for $400 million in children's privacy suit

The Justice Department (DOJ) and TikTok have reached a $400 million settlement to resolve allegations of violating children's online privacy laws, according to an announcement first shared with Axios. This significant settlement marks one of the largest recoveries under the Children's Online Privacy Protection Act (COPPA) and comes after the DOJ filed the lawsuit in 2024 under former Attorney General Merrick Garland.

TikTok, owned by parent company ByteDance, agreed to pay the total amount without admitting wrongdoing and without undergoing further litigation.

In response to the settlement, Associate Attorney General Stanley Woodward stated that this victory is major for American children and parents, emphasizing the DOJ's priority to ensure children's online protection and companies' adherence to legal obligations. The settlement agreement includes stronger safeguards for youths, better age-related controls, and measures for parents to provide more oversight.

TikTok has made substantial changes since 2024, including stronger safeguards, better age controls, and measures for parental oversight, which the DOJ claims have materially advanced public interests and strengthened protections for American families. The lawsuit accused TikTok of knowingly permitting children to create accounts, unlawfully collecting personal information, and failing to comply with a 2019 consent order.

Despite these issues, the settlement may be costly for TikTok, but it is preferable to continued litigation with the DOJ.