TikTok to pay US$400m settlement in US children's privacy case
SAN FRANCISCO: TikTok and parent company ByteDance have agreed to pay US$400 million to settle a lawsuit with the US Department of Justice over claims that the video-sharing platform violated federal children’s privacy laws, the department announced on Friday.
TikTok and its parent company ByteDance have agreed to a US$400 million settlement with the US Department of Justice over allegations of violating federal children's privacy laws. The settlement includes an immediate payment of US$300 million and an additional US$100 million upon the entry of an order vacating a prior consent decree against TikTok's predecessor, Musical.ly.
This is one of the largest recoveries obtained from a case involving the Children's Online Privacy Protection Act (COPPA), which bars websites from collecting personal information from children under 13 without parental permission. The Justice Department and Federal Trade Commission jointly sued TikTok in 2024, claiming that the platform had placed the safety of millions of children at risk by collecting their personal data without parental consent.
Even accounts created in TikTok's Kids Mode, intended for users under 13, were found to have collected email addresses and other personal information. The lawsuit claims that TikTok allowed children to use the app while also gathering and using personal data without informing parents. The settlement funds' purpose has not been disclosed, though it was previously speculated that they might be used for beautification projects.
Meanwhile, the US settlement follows a growing global crackdown on TikTok, with the EU accusing the platform of failing to protect children through its account settings, potentially facing fines.
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