TikTok, ByteDance Agree to $400 Million Settlement in US Child Privacy Case

TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to resolve a US Department of Justice (DOJ) lawsuit accusing the social media app of collecting data on children in violation of the Children’s Online Privacy Protection Act. Under the proposed settlement, which requires court approval, TikTok will pay $300 million up front and an additional $100 million once a court order vacates a prior consent decree involving TikTok’s predecessor, Musical.ly. The DOJ said a statement that the settlement features among the largest in cases involving the Children's Online Privacy Protection Act.

“This settlement is a major victory for American children and parents,” said Associate Attorney General Stanley Woodward adding that the department’s priority is ensuring that children are protected online "and that companies entrusted with their personal information meet their legal obligations.” The settlement would end court oversight of TikTok’s privacy practices. The company has made several changes to ownership and privacy policies since the DOJ filed its suit. It has taken steps to strengthen safeguards for young users, including improved age controls and parental oversight.

The DOJ sued TikTok in 2024 on behalf of the Federal Trade Commission, alleging the company allowed millions of children under 13 to create accounts without parental consent. Such a lapse made it difficult for parents to request deletion of those accounts, the Justice Department argued. TikTok and Beijing-based ByteDance struggled through geopolitical and regulatory tug-of-war for several years that threatened its survival in the US over national security concerns.

US Congress passed legislation in 2024 to ban the app unless ByteDance sold TikTok, over concerns that the Chinese government could use US user data or the app to push Chinese Communist Party's narratives. President Donald Trump oversaw a deal, which closed in January that moved parts of TikTok's US business from control by ByteDance to a new, American-led and majority American-owned TikTok venture.

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