TikTok Reaches $400 Million Settlement With US Justice Department Over Children’s Privacy

TikTok has finalized a $400 million settlement with the U.S. Department of Justice to resolve a 2024 lawsuit alleging the company breached federal children's privacy laws. The Department of Justice announced that TikTok will disburse $300 million upfront and an additional $100 million once an earlier consent decree, tied to its predecessor app Musical.ly, is struck down.

U.S. Associate Attorney General Stanley E. Woodward Jr. expressed satisfaction over the settlement, stating it is a significant win for American children and parents. Woodward emphasized the Department's commitment to safeguarding children online and ensuring companies handling their personal data adhere to legal requirements.

Since the DOJ's lawsuit began in 2024, TikTok has experienced considerable changes, particularly in its U.S. ownership. In January, the video-sharing platform entered into agreements with prominent investors, including Oracle, Silver Lake, and the UAE-based MGX, to establish a new joint venture named TikTok U.S.

The recent legal action centered on claims that TikTok and its parent company ByteDance, based in China, infringed upon a federal law mandating that kid-focused apps and websites obtain parental consent before amassing personal information from children under 13. Moreover, the lawsuit alleged that the companies neglected to comply with parents' requests to delete their children's accounts and refused to delete accounts even when they knew they belonged to minors under 13.

The settlement occurs as social media corporations confront a deluge of lawsuits concerning children's safety and privacy, and an increasing number of nations are prohibiting young children and teenagers from using social media applications. Meanwhile, Meta Platforms, the parent company of Instagram, is presently on trial in a federal court in Oakland, California, accused of violating the 1998 Children's Online Privacy Protection Act (COPPA) and various state statutes.