TikTok to pay $400m settlement in US children’s privacy case

The U.S. Department of Justice and TikTok have reached a $400 million settlement to address claims that the video-sharing platform breached federal children's privacy laws, according to a statement released on Friday. The agreement mandates immediate payment of $300 million by TikTok, with an additional $100 million due upon the court's approval to vacate an earlier consent decree related to a prior lawsuit involving ByteDance's predecessor, Musical.ly.

This settlement represents one of the largest recoveries ever obtained from a case under the Children's Online Privacy Protection Act (COPPA), which prohibits websites from collecting personal information from children under 13 without parental consent. Jointly prosecuted by the Justice Department and Federal Trade Commission in 2024, the lawsuit alleged that TikTok endangered the safety of millions of children by gathering their personal data without parental permission, including accounts in "Kids Mode" designed for users under 13.

These accounts reportedly collected email addresses and other personal details. The Justice Department emphasized the importance of COPPA in safeguarding children's data, highlighting the potential risks posed by platforms like TikTok.