TikTok to pay $400m to US in one of largest child privacy settlements
The deal stems from a 2024 lawsuit alleging TikTok and its parent company ByteDance collected "vast amounts of data" on millions of users under the age of 13.
In a significant $400 million settlement, the US government has resolved a 2024 lawsuit alleging that TikTok and its parent company ByteDance collected extensive data from millions of underage users, violating the Children's Online Privacy Protection Act (COPPA). This marks one of the largest settlements in history for child privacy issues.
The Department of Justice, under former President Joe Biden, accused TikTok of failing to effectively assess user ages or obtain parental consent for users under 13. Assistant Attorney General Brett Shumate stated that children and parents are now better protected than when the case began. Other companies, such as Google, Meta, and Epic Games, have also faced penalties for COPPA violations.
TikTok's US operations, currently owned 81% by an investor consortium, paid $300 million immediately and another $100 million upon the government lifting a 2019 FTC consent decree.
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