Qustodio: 26% of Australian children aged 13 to 15 were on TikTok in July, just one percentage point below pre-ban levels, and 10-to-12-year-olds' usage is up (Newley Purnell/Bloomberg)

TikTok has agreed to pay $400 million to settle a 2024 lawsuit alleging the company violated federal children’s privacy laws. The Department of Justice announced on Friday that the payment will be $300 million upfront and an additional $100 million once an earlier consent decree against TikTok's predecessor, Musical.ly, is vacated.

U.S. Associate Attorney General Stanley E. Woodward Jr. praised the settlement, emphasizing its significance for American children and parents. The dispute centered on TikTok's and ByteDance's alleged violation of a law requiring parental consent before collecting personal data from children under 13. The settlement also addressed the companies' failure to honor parent requests to delete children's accounts and their refusal to do so even when aware the accounts belonged to minors.

The litigation reflects the increasing scrutiny social media platforms face regarding children's safety and privacy, with similar legal battles underway against other companies.