TikTok to Pay $400 Million to Settle US Child Privacy Case
Chinese video-sharing platform TikTok and its parent company ByteDance have reached an agreement with the US Department of Justice to settle a high-profile case alleging violations of laws protecting children’s privacy. Under the agreement, TikTok will pay $400 million to the US government.
The settlement represents one of the largest financial payments in the history of enforcement actions involving the Children’s Online Privacy Protection Act, or ‘COPPA’.
Background of the Case and Main Allegations
In 2024, during the administration of then-US President Joe Biden, the US Department of Justice took legal action against TikTok. The allegations stated that TikTok and its predecessor app, Musical.ly, allowed children under the age of 13 to create accounts without obtaining permission from their parents.
The companies were also accused of illegally collecting children’s personal information, including email addresses, from users of the ‘Kids Mode’ feature.
In addition, although parents requested that their children’s accounts and data be deleted, the company repeatedly failed to comply with those requests, which constituted a clear violation of US technology laws.
Structural Changes and Terms of the Agreement
The US Department of Justice said in a statement that TikTok’s ownership structure, management and user-safety policies have undergone major changes since the case was filed.
A joint entity has been established with investments from major companies including Oracle, Silver Lake and MGX to operate TikTok’s US business, while ByteDance retains a 19.9 percent stake. Under the new structure, age restrictions for younger users and parental oversight mechanisms have been significantly strengthened.
Under the settlement agreement, TikTok will immediately pay $300 million. The remaining $100 million will be paid after a court formally vacates a previously issued legal order involving Musical.ly.
With the payment, TikTok has resolved a major long-running legal challenge related to its handling of children’s privacy.
//DBTech/BMT/OR//
