TikTok Settles US Children’s Privacy Case for $400 M
Synopsis
The settlement resolves a Justice Department lawsuit accusing the short-video platform of failing to protect children’s privacy and collecting information from users under 13 without parental consent.
TikTok's settlement of a lawsuit brought by the US government for illegally collecting personal information from under-13s has settled. TikTok's $400 million settlement with the US government for illegally collecting personal data from children under 13 has been approved.
The agreement was announced Aug. 21 by the US Department of Justice, in a lawsuit brought under the Children's Online Privacy Protection Act (COPPA). The claims settled are allegations and the settlement is not an admission of liability.
Under the TikTok $400 million settlement, the company will pay $300 million immediately. Another $100 million would be disbursed once a judge lifts an earlier consent agreement with Musical.ly (now TikTok).
The suit was filed in the U.S. District Court for the Central District of California. The government alleged that TikTok and ByteDance "grabbed children's personal data without the required parental consent under COPPA, which governs 'covered' online services that deal with the data of children under 13.
A Major US Privacy Penalty
The $400 million settlement of the TikTok case is one of the largest recoveries in a COPPA case," the Justice Department said. The case will be dismissed with prejudice.
In 2019, Musical.ly, the predecessor to TikTok, agreed to pay $5.7 million to the FTC in connection with two separate lawsuits over children's personal data. The prior case marked the FTC's largest civil penalty for children's privacy issues.
The new settlement also comes as the U.S. continues to enforce U.S. children's data laws. The FTC noted recent COPPA enforcement actions against NGL, Disney, Epic Games, and the 2024 ByteDance case.
Changes Follow the 2024 Lawsuit
TikTok has made changes to its ownership, management, compliance functions, and privacy practices since the filing of the suit, the Justice Department said. It also noted improvements in age appropriate regulations and parental oversight.
The TikTok $400 million settlement is part of a larger restructuring of TikTok's US business. TikTok has more than 200 million U.S. users and has agreed to create a majority American-owned joint venture to oversee U.S. data, according to Reuters. The deal was struck in January 2026 with ByteDance.
Australia Faces Its Own Compliance Test
Meanwhile, the case also comes as Australia begins enforcing its social media minimum age regulations. If age-restricted platforms are found to be in breach because they have not taken reasonable steps to prevent children under 16 from opening an account, the federal government can fine them up to A$49.5 million.
The $400 million TikTok settlement comes as a chapter in a string of child-related enforcement actions and regulations, such as the California Consumer Privacy Act (CCPA), which has been in effect for more than a year.
The TikTok $400 million settlement follows a series of child data enforcement actions and requirements, including the California Consumer Privacy Act (CCPA), which has been in place for more than a year.
It's case was referred by the Federal Trade Commission and was addressed by the Civil Division of the Justice Department, the agency said.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
