TikTok settles U.S. privacy lawsuit for up to $400 million

Social media platform TikTok has reached a settlement with the U.S. Department of Justice, agreeing to pay up to $400 million to resolve a lawsuit concerning children's privacy. The legal action, initiated in 2024, accused TikTok and its Chinese parent company, ByteDance, of violating the law by collecting personal information from children under 13 without parental permission. The company also allegedly allowed children under 13 to create and use TikTok accounts.

“

TikTok and its Chinese parent company ByteDance have agreed to pay up to $400 million in compensation.

While the Department of Justice has not disclosed further details beyond the financial penalty, TikTok has reportedly implemented substantial changes. These modifications include alterations to its ownership structure and enhancements to its privacy and user protection policies, particularly for its younger demographic. The settlement aims to address the alleged privacy violations and ensure better safeguarding of children's data on the platform.

“

TikTok violated the law by collecting personal data from children under 13 without parental consent. The company also knowingly allowed children under 13 to create and use TikTok accounts.