TikTok to pay $400M to settle US children's privacy lawsuit

TikTok and parent company ByteDance have agreed to pay $400 million to settle allegations that the video-sharing platform violated federal children's privacy laws, the Justice Department said. Under the terms, $300 million is due immediately while the remaining $100 million will be paid after a court dismisses an earlier consent decree involving its predecessor Musical.ly. The settlement resolves claims that the company allowed minors under 13 to create accounts and failed to delete their data when parents requested it.

Official Statements

Associate Attorney General Stanley Woodward Jr. hailed the agreement as a critical step in protecting minors online. "This settlement is a major victory for American children and parents," 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," he added. "This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve," he stated.

Ownership Changes

The resolution follows a 2024 lawsuit alleging violations of the Children's Online Privacy Protection Act. Since the litigation began, TikTok has transferred control to TikTok USDS Joint Venture — an entity majority-owned by American investors — complying with a federal mandate requiring ByteDance to divest from the app amid national security concerns over its Chinese ties. The company has since implemented sweeping changes to its management, compliance protocols, and privacy practices, according to the department.