TikTok Agrees to $400m US Settlement Over Children’s Privacy

TikTok has agreed to pay $400 million to the US government to resolve allegations that the platform violated children’s privacy laws by collecting personal information from users under 13 without adequate parental consent.

The settlement follows a 2024 lawsuit brought by the US Department of Justice during Joe Biden’s presidency. The government alleged that TikTok and its parent company, ByteDance, had gathered extensive data from millions of children in violation of the Children’s Online Privacy Protection Act, or COPPA.

The law, introduced in 2000, requires online services directed at children to obtain parental consent before collecting certain personal information from users under 13.

TikTok Settlement Ends Federal Privacy Case

Under the agreement, TikTok and ByteDance will immediately pay the Justice Department $300 million. A further $100 million will be paid once the government vacates a 2019 consent decree involving the Federal Trade Commission.

The settlement ranks among the largest US penalties involving children’s online privacy.

Assistant Attorney General Brett Shumate said the agreement would provide stronger protections for children and parents compared with the situation when the case was launched.

The case dates back to TikTok’s earlier corporate structure and follows regulatory concerns that had surrounded the platform for years.

Earlier Musical.ly Case Adds to TikTok’s History

Before TikTok’s current settlement, the platform’s predecessor, Musical.ly, had already faced federal action over children’s privacy.

Under a 2019 agreement, Musical.ly was required to pay a $5.7 million penalty and introduce measures requiring parental consent for users under 13.

The latest settlement builds on that regulatory history. The Justice Department said TikTok has undergone significant changes since the lawsuit was filed, including changes involving ownership, privacy practices and controls designed to protect younger users.

The department did not announce additional restrictions on TikTok beyond the financial settlement.

US Government Accused TikTok of Failing to Protect Children

When the lawsuit was filed, US attorneys alleged that TikTok had more than 170 million users in the United States and argued that the platform appealed strongly to children.

The government claimed TikTok failed to effectively determine users’ ages and did not consistently obtain parental permission when children under 13 used the service.

Those allegations placed TikTok at the centre of a wider debate in the United States over how technology companies collect and use children’s personal information.

Other major technology companies have also faced substantial penalties under COPPA. Google’s YouTube paid $170 million in 2019, while Epic Games agreed to pay $275 million in 2022 over alleged violations.

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Meta Faces Wider Children’s Privacy Challenge

The TikTok settlement comes as Meta faces another major legal battle over children’s privacy.

Attorneys general from 29 US states have accused Meta of violating COPPA and allegedly targeting children through its platforms while profiting from their engagement.

A jury trial in that case has begun, with potential penalties reportedly reaching extremely large sums if Meta is found liable.

The separate cases highlight growing pressure on technology companies to strengthen age verification, parental consent systems and privacy protections for younger users.

TikTok’s US Ownership Has Changed

The TikTok case also comes after major changes to the company’s US business.

The lawsuit began before the restructuring that separated TikTok’s US operations from its previous China-based corporate arrangement. The settlement, however, relates only to TikTok’s operations in China.

ByteDance remains a privately held company and was recently valued by investors at around $550 billion.

TikTok’s US operations are now controlled primarily by an investor consortium holding an 81% stake, while ByteDance retains 19%.

The ownership changes followed years of political pressure in Washington. In 2024, the Biden administration pushed for TikTok to be banned in the United States or for ByteDance to divest its American operations. Donald Trump later supported the divestment approach, which was completed last year.

The TikTok settlement marks another major development in the long-running regulatory battle surrounding the social media platform. While the agreement resolves the federal privacy lawsuit, the wider debate over children’s safety, data collection and age verification across social media is likely to continue.