TikTok reaches $400 million settlement with US Justice Department over children’s privacy

TikTok has resolved a $400 million lawsuit brought by the U.S. Department of Justice, concluding a 2024 legal battle over alleged violations of federal children’s privacy laws. The Department of Justice announced Friday that TikTok will pay $300 million upfront and an additional $100 million once a previous consent decree against its predecessor, Musical.ly, is vacated.

U.S. Associate Attorney General Stanley E. Woodward Jr. praised the settlement as a "major victory for American children and parents," emphasizing the government's commitment to safeguarding children online and holding companies accountable for their legal responsibilities regarding personal data. Since the DOJ's lawsuit in 2024, TikTok has made significant changes, particularly in the ownership of its U.S. division.

In January, the video-sharing platform entered into agreements with major investors, including Oracle, Silver Lake, and the Emirati firm MGX, to create a new joint venture. The recent lawsuit centered on claims that TikTok and its parent company ByteDance based in China failed to obtain parental consent before collecting data from children under 13, ignored deletion requests from parents, and inaccurately refused to delete accounts belonging to children under 13.