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TikTok to pay $559m in 'one of the largest' child pivacy settlements

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • TikTok and its parent company ByteDance have agreed to pay $400 million to settle a US lawsuit alleging violations of children's privacy laws.
  • The settlement addresses claims that TikTok collected personal data from children under 13 without parental consent, violating the Children's Online Privacy Protection Act (COPPA).
  • This resolution is one of the largest recoveries under COPPA, and it comes amid increased global scrutiny of TikTok's data practices.

TikTok and its parent company, ByteDance, have reached a $400 million settlement with the U.S. Department of Justice to resolve claims that the popular video-sharing platform violated federal children's privacy laws. The settlement is considered one of the largest recoveries ever obtained in a case involving the Children's Online Privacy Protection Act (COPPA).

Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly.

— US Department of JusticeDetailing the payment structure of the settlement agreement.

The lawsuit, filed in 2024 by the Justice Department and the Federal Trade Commission, alleged that TikTok jeopardized the safety of millions of children by collecting their personal data without obtaining parental permission. COPPA strictly prohibits websites from gathering personal information from children under 13 without explicit parental consent. The suit claimed that even accounts created under a "Kids Mode" designation collected sensitive data like email addresses.

It is "one of the largest recoveries ever obtained" from a case involving the Children's Online Privacy Protection Act (COPPA).

— US Department of JusticeHighlighting the significance of the settlement amount.

This settlement stems from a 2019 COPPA lawsuit against Musical.ly, an app that ByteDance acquired in 2017 and subsequently merged into TikTok. The agreement includes an immediate payment of $300 million, with an additional $100 million due upon the vacating of a prior consent decree against Musical.ly.

A high level of protection should not be an opt-in; it should be the default.

— Henna VirkkunenEU tech chief Henna Virkkunen commenting on child protection standards for social media platforms.

The resolution in the U.S. occurs as TikTok faces mounting regulatory pressure worldwide. In Europe, Brussels initiated a probe into TikTok in 2024 under the Digital Services Act (DSA), citing concerns that the platform's default account settings could expose minors to risks like cyberbullying and predatory behavior. The EU has emphasized that robust child protection should be the default, not an opt-in feature, and has accused TikTok of failing to meet these standards.

TikTok's account settings fail to meet this standard, as they expose minors' accounts and content too widely.

— European UnionThe EU's preliminary view on TikTok's compliance with the Digital Services Act regarding minors' privacy.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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