US Justice Department and TikTok reach $400 million children's privacy settlement

The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) reached a $400 million settlement with TikTok and its former parent company ByteDance on Friday to resolve allegations of violating children's online privacy. The case, initiated in August 2024, accused TikTok and ByteDance of failing to safeguard children's personal information and illegally collecting it from users under the age of 13.

Under the terms of the agreement, TikTok will pay $300 million immediately and an additional $100 million once a court vacates a prior consent decree with the FTC from 2019, which pertained to its predecessor, Musical.ly. At that time, TikTok, then known as Musical.ly, was found to have knowingly collected personal information, including names, email addresses, and other details, from young children without obtaining parental consent. The FTC had penalized TikTok with a $5.7 million fine for this violation.

The DOJ highlighted that TikTok has undergone significant changes since the lawsuit was filed, including shifts in ownership, management, compliance functions, and privacy practices. The TikTok US joint venture, in court filings, stated that all users must disclose their date of birth to access the platform. The company also mentioned employing sophisticated age-moderation systems to identify and delete accounts belonging to children under 13 who have misrepresented their age.

Associate Attorney General Stanley Woodward emphasized the DOJ's commitment to protecting children online and ensuring that companies that handle their personal data adhere to legal obligations. The settlement aims to provide American families with enhanced protections without the delays and uncertainties associated with prolonged litigation.