Data privacy for children: $400 million payment: US Justice Department halts TikTok investigations

The U.S. business of TikTok has agreed to settle investigations into its collection of children's data by paying $400 million. The U.S. Justice Department announced that the settlement does not involve an admission of guilt, pointing to the recent ownership change within TikTok's U.S. operations and a subsequent overhaul of its data privacy practices as key factors.

This legal action stems from a lawsuit filed in 2024 during the Biden administration. The core accusation was that TikTok allowed children under the age of 13 to establish accounts without obtaining verifiable parental consent, thereby violating the Children's Online Privacy Protection Act (COPPA). Critics argue that platforms have not been sufficiently diligent in preventing underage users from providing false birth dates to circumvent age restrictions.

TikTok's future in the United States was secured in early 2026 when a new company, backed by American investors, acquired a majority stake in its U.S. operations. This move was mandated by U.S. law, requiring the China-based owner, Bytedance, to divest its U.S. assets for the app to continue operating in the country. Bytedance retains control of TikTok's operations elsewhere in the world.

Previously, American online platforms had implemented a general minimum age of 13. However, the prevalence of children creating profiles with incorrect birthdates highlighted ongoing challenges in enforcing these age limits effectively across the digital landscape.

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The settlement includes no admission of guilt.