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

The US government and video-sharing platform TikTok have reached a $400 million settlement in a lawsuit alleging violations of federal children's privacy laws, according to a statement released on Friday.

The lawsuit, jointly brought by the Department of Justice and the Federal Trade Commission, claimed that TikTok collected personal information from users under 13 despite having a "Kids Mode" meant for that age group. The lawsuit alleged that the platform gathered email addresses and other data without parental consent, putting the safety of millions of children at risk.

Under the settlement, TikTok will pay $300 million immediately and an additional $100 million once a court vacates a prior consent decree related to its predecessor app, Musical.ly. ByteDance, the parent company of TikTok, is the ultimate beneficiary of the settlement.

This represents one of the largest recoveries obtained from a case involving the Children's Online Privacy Protection Act (COPPA), which prohibits websites from collecting personal information from children under 13 without parental permission. COPPA was the focus of the lawsuit.

The news comes amid ongoing discussions about the potential use of the settlement funds for various projects, including beautification initiatives that have involved resurfacing the Lincoln Memorial Reflecting Pool and renovating the White House ballroom.