The U.S. Department of Justice announced a $400 million settlement with TikTok, ByteDance, and affiliated entities over violations of children's online privacy law. The announcement came Friday, resolving a lawsuit the DOJ filed in 2024.
According to Al Jazeera, the case centered on compliance with the Children's Online Privacy Protection Act, which requires services aimed at children to obtain parental consent before collecting personal information from users under age 13.
The DOJ said TikTok knowingly permitted children to create regular accounts and then create and share short-form videos and messages with adults and others on the regular TikTok platform. TikTok collected personal information from these children without obtaining consent from their parents.
TikTok will pay $300 million immediately. The remaining $100 million will follow after a court cancels a previous settlement made with TikTok's predecessor, Musical.ly.
Associate Attorney General Stanley E. Woodward Jr. called it a clear win for families. "This settlement is a major victory for American children and parents," Woodward said in a news release. "The Department's priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve."
Assistant Attorney General Brett Shumate of the Justice Department's Civil Division added, "This settlement reflects substantial progress, secures a significant monetary recovery, and brings this matter to a successful conclusion."
The DOJ said that since it took TikTok to court, the company has made significant changes and strengthened safeguards to protect children's privacy.
TikTok is used by more than 200 million Americans. In January, ByteDance agreed to create a majority U.S.-owned joint venture to secure domestic data and avoid a U.S. ban on the app.
Al Jazeera reported it had reached out to TikTok for comment but had not received a response.