TikTok to pay $400 million to settle U.S. child privacy lawsuit

TikTok and its parent company, ByteDance, have agreed to a $400 million settlement to resolve a U.S. lawsuit concerning alleged violations of children's online privacy laws. The agreement, announced Friday by the U.S. Department of Justice, addresses claims that the popular video-sharing platform infringed upon the Children's Online Privacy Protection Act (COPPA).

The lawsuit, initiated in 2024, accused TikTok of collecting and retaining personal information from users under 18 without providing proper parental notification or obtaining consent. As part of the settlement, TikTok will pay $300 million immediately. The Department of Justice described the pact as one of the largest financial recoveries in a case involving COPPA.

An investigation by the Federal Trade Commission (FTC) reportedly found that TikTok had, since 2019, allegedly allowed children to create accounts and interact with adults on the platform. Deputy Assistant Attorney General Stanley E. Woodward Jr. hailed the settlement as a victory for American children and parents, emphasizing the resolution's aim to protect minors online and ensure companies comply with U.S. data privacy regulations.

This resolution comes amid heightened scrutiny of how major digital platforms manage the personal data of children and adolescents. It also occurs as 29 U.S. states pursue a separate lawsuit against Meta for alleged COPPA violations, with that trial having recently commenced in Oakland, California. The TikTok case sets a precedent for other ongoing legal challenges.

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the agreement constitutes a victory for American children and parents.