TikTok Agrees to $400M Settlement Over Children’s Privacy

TikTok and its parent company ByteDance have agreed to pay up to $400 million to settle US allegations over children's privacy, following a lawsuit alleging they violated federal children's privacy protections. The settlement, one of the largest ever secured under the Children’s Online Privacy Protection Act (COPPA), includes a $300 million civil penalty with an additional $100 million due if the court vacates a 2019 consent decree involving Musical.ly, which was TikTok's predecessor.

The Justice Department described the settlement as a major victory for American children and parents, stating that the claims remain allegations and there has been no determination of liability. TikTok disputes the allegations, claiming some are based on "past events and practices that are factually inaccurate or have been addressed."

The company has since made changes, including stricter age verification, improved parental controls, and enhanced privacy practices. The settlement comes as regulators and state governments intensify scrutiny of major social platforms' handling of children's data and online safety.