TikTok Agrees on Privacy Settlement in the US

TikTok and its parent company, ByteDance, agreed to pay $400 million to settle a US Department of Justice (DoJ) litigation. The Department alleged that the social network violated children’s online privacy rules.

The settlement requires a payment of $300 million immediately, with a further $100 million due after a court vacates a 2019 consent decree involving Musical.ly, the social media service acquired by ByteDance in 2017 that later became TikTok. The DoJ first sued TikTok and ByteDance in 2024, alleging the companies illegally collected children’s personal information and failed to obtain parental consent as required under the Children’s Online Privacy Protection Act (COPPA).

The watchdog explained that TikTok has made significant changes to its ownership, management, compliance functions and privacy practices since the lawsuit was filed. These include extensive measures to strengthen guardrails for younger users, tougher age controls and improved parental oversight. In a court filing, TikTok US said that all users must now enter their date of birth to access the platform.

It also noted it had developed robust age-moderation systems to identify children under 13 who misrepresent their age, with hundreds of personnel trained in underage moderation. The company added that its updated measures have resulted in tens of thousands of underage accounts being deleted.

The DoJ described the settlement as one of the largest recoveries secured in a COPPA case. “This settlement is a major victory for American children and parents,” noted Stanley Woodward, Associate Attorney General. “We aim to ensure that children are protected online and that companies entrusted with their personal information meet their legal obligations.”