TikTok, ByteDance Agree to $400M Child Privacy Settlement

TikTok and its Chinese parent company ByteDance have agreed to a US$400 million settlement to resolve a US Justice Department lawsuit accusing the video-sharing app of violating children's online privacy laws, according to the South China Morning Post. The settlement, announced on Friday, resolves a major federal case while TikTok's American operations remain under intense political scrutiny.

The agreement resolves allegations brought by the US Justice Department and the Federal Trade Commission in 2024, which accused TikTok and ByteDance of collecting personal information from children under 13 without obtaining parental consent, in violation of the Children's Online Privacy Protection Act (COPPA), the report said.

Under the terms of the TikTok ByteDance settlement, TikTok will pay $300 million immediately and an additional $100 million if a court vacates a previous consent decree entered in 2019 against Musical.ly, TikTok's predecessor app, according to the South China Morning Post.

The Justice Department described the agreement as "one of the largest recoveries ever obtained" in a COPPA case. Associate Attorney General Stanley Woodward said the department's priority "is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations," the report said.

The TikTok children privacy lawsuit is among the most significant enforcement actions taken under COPPA, a US federal law designed to protect the online privacy of children under 13. The case adds to continued regulatory and political scrutiny of TikTok in the United States, where the app's ownership structure and data practices have faced sustained government attention.

The settlement comes as child safety and online privacy issues continue to draw legal action against major technology platforms, including a separate Meta trial in California over child safety claims.

The settlement highlights continued US regulatory scrutiny of TikTok and ByteDance over children's privacy and data protection, while reinforcing the importance of stronger safeguards for minors using online platforms.