TikTok to pay $400 million to settle lawsuit over collection of minors' personal data

TikTok has reached an agreement to pay $400 million to settle a legal dispute over its collection of children's personal data. The U.S. Department of Justice announced the settlement, emphasizing that it does not involve any admission of guilt by the platform.

The resolution comes amid changes in TikTok's ownership structure in the U.S. and a review of its privacy practices. The lawsuit, initiated by the Justice Department in 2024 during the Biden administration, alleged that TikTok permitted children under the age of 13 to create accounts without obtaining parental consent. This practice was cited as a violation of American law, which sets 13 as the minimum age for creating an online account without parental approval.

While platforms typically enforce this age limit, children can bypass restrictions by falsely stating their birthdate. Critics have accused technology companies of deliberate inaction in preventing such violations. The settlement also follows ByteDance, TikTok's Chinese parent company, being compelled in January to transfer control of its U.S. operations to a consortium led by American investors to ensure the platform's continued presence in the country.

This development occurs as other major geopolitical and economic stories unfold, including Tesla's upcoming truck, a potential trade freeze between the U.S. and Canada due to Trump-imposed tariffs, and escalating U.S.-Iran economic tensions with the threat of severe sanctions.