TikTok, ByteDance agree to US$400 million settlement with US over children’s privacy suit

TikTok and its Chinese parent ByteDance have agreed to pay US$400 million to settle a US Justice Department lawsuit accusing the video-sharing app of violating children’s online privacy laws, resolving a major federal case as the platform’s American operations remain under intense political scrutiny.

The settlement, announced on Friday, resolves allegations brought by the Justice Department and the Federal Trade Commission in 2024, that TikTok and ByteDance collected personal information from children under 13 without obtaining parental consent, in violation of the Children’s Online Privacy Protection Act, or COPPA.

Under the agreement, TikTok will pay US$300 million immediately and another US$100 million if a court vacates a previous consent decree entered in 2019 against Musical.ly, TikTok’s predecessor.

The Justice Department described the agreement as “one of the largest recoveries ever obtained” in a COPPA case.

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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”.