TikTok to Pay $400 Million to Settle DOJ Child Privacy Case

TikTok Inc. and Chinese parent ByteDance Ltd. agreed to pay $400 million to resolve a a Biden-era lawsuit by the Justice Department accusing the popular social media app of collecting data on children in violation of an online privacy law.

The settlement comes several months after ByteDance closed a long-awaited deal to transfer parts of its US operations to American investors to resolve national security concerns.

The Justice Department sued TikTok in 2024 on behalf of the Federal Trade Commission, alleging the company allowed millions of children under the age of 13 to create accounts without their parents’ knowledge or consent while making it difficult for parents to request the deletion of those accounts.

The company didn’t immediately respond to a request for comment.

TikTok will pay $300 million at first and another $100 million once an order is filed vacating a prior consent decree against TikTok’s predecessor, Musical.ly. DOJ said the settlement was among the largest in a case involving the Children’s Online Privacy Protection Act.

“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley Woodward said in a statement. “The department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

The Justice Department filed its complaint in 2024, but DOJ said since that time TikTok has undergone significant changes to its ownership and privacy policies. The company also has taken steps to strengthen safeguards for young users by improving age-related controls and increasing parental oversight, according to the statement.