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

TikTok has resolved a lawsuit alleging the company violated federal children's privacy laws by reaching a $400 million settlement with the U.S. Department of Justice. The settlement includes an $300 million payment, followed by an additional $100 million after a court order vacates an earlier consent decree against TikTok's predecessor, Musical.ly.

U.S. Associate Attorney General Stanley E. Woodward Jr. emphasized the importance of protecting children online and ensuring companies meet their legal obligations. TikTok underwent significant changes, such as a new U.S. joint venture with Oracle, Silver Lake, and MGX. The lawsuit focused on allegations that TikTok and ByteDance, its China-based parent company, failed to obtain parental consent for collecting personal information from children under 13 and ignored requests to delete accounts belonging to those minors.