TikTok, ByteDance agree to US$400 million settlement with US over children’s privacy suit
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- TikTok and its parent company ByteDance have agreed to a US$400 million settlement with the US Justice Department over children's privacy violations.
- The lawsuit accused the app of collecting personal information from children under 13 without parental consent, violating the Children's Online Privacy Protection Act (COPPA).
- The settlement is considered one of the largest recoveries in a COPPA case, with TikTok paying US$300 million immediately and an additional US$100 million contingent on a court decision regarding a previous decree.
Video-sharing app TikTok and its Chinese parent company, ByteDance, have reached a US$400 million settlement with the U.S. Justice Department, resolving a significant federal lawsuit concerning violations of children's online privacy laws. This agreement comes as TikTok faces ongoing political scrutiny over its U.S. operations.
The lawsuit, initially filed by the Justice Department and the Federal Trade Commission in 2024, alleged that TikTok and ByteDance unlawfully collected personal information from children under the age of 13. The core of the accusation is the failure to obtain verifiable parental consent, a direct contravention of the Children's Online Privacy Protection Act (COPPA).
The priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations.
Under the terms of the settlement, TikTok is required to pay US$300 million upfront. An additional US$100 million will be paid if a court vacates a prior consent decree that was established in 2019 against Musical.ly, TikTok's predecessor. The Justice Department highlighted the settlement as "one of the largest recoveries ever obtained" in a COPPA case, emphasizing its commitment to protecting children online. Associate Attorney General Stanley Woodward stated that the department's priority is ensuring companies safeguard children's data and adhere to their legal obligations.
one of the largest recoveries ever obtained
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Originally published by South China Morning Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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