TikTok and ByteDance Agree to $400 Million Children’s Privacy Settlement

The US Department of Justice has reached a $400 million settlement with TikTok, ByteDance, and related companies over alleged violations of the Children's Online Privacy Protection Act.

The agreement addresses a 2024 DOJ lawsuit that accused the companies of breaching COPPA rules as far back as 2019. TikTok is set to pay $300 million now, with an additional $100 million due if a court vacates an earlier consent decree involving Musical.ly, its predecessor.

This is among the largest COPPA settlements so far. The settlement addresses allegations only. There has been no court finding that TikTok or ByteDance is liable.

TikTok's COPPA Allegations and $400 Million Settlement Terms

The DOJ filed its lawsuit in 2024, alleging that TikTok and ByteDance violated COPPA rules going back to 2019. The FTC referred the case after claiming TikTok continued to break COPPA requirements even after a 2019 agreement to comply.

According to the DOJ, TikTok knowingly let children under 13 create standard accounts outside its restricted Kids Mode, collected and kept their personal information without parental consent, did not delete accounts and data when parents asked, and lacked effective procedures to identify and remove underage accounts.

This case comes after a 2019 settlement where Musical.ly, which later became TikTok, agreed to pay $5.7 million to the FTC for allegedly collecting personal data from users under 13 without parental consent.

The agreement ends the litigation. The DOJ noted that TikTok has made changes to its ownership, data management, and legal compliance since 2024. The agency also acknowledged updates to TikTok's privacy retention policies, age controls, and parental oversight features.

TikTok will pay $300 million now, with another $100 million due if the earlier Musical.ly consent decree is vacated by a court.

"Companies that collect children's personal information must comply with the law," said Assistant Attorney General Brett A. Shumate. "This resolution secures a significant monetary recovery and reflects the Department's commitment to ensuring children receive the full protections that Congress mandated."

What TikTok and ByteDance Have Not Admitted or Confirmed

The DOJ emphasized that the settlement addresses allegations only, and there has been no court decision on liability. The extra $100 million payment depends on whether the earlier Musical.ly consent decree is vacated, which remains undecided.

The announcement did not provide full details on the changes TikTok made to its age controls and data practices since 2024. This is a legal matter related to child safety. Parents who want to manage their child's use of TikTok can review the platform's parental control tools and official guidance.

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