TikTok and its parent company ByteDance agreed on Friday to pay $400 million to settle a lawsuit brought by the U.S. Department of Justice over children's privacy, one of the largest sums ever recorded in a case of this kind.
The Justice Department originally sued TikTok in 2024, alleging that the app failed to prevent children from accessing the platform and illegally collected their personal data. The department said the conduct violated the Children's Online Privacy Protection Act, known as COPPA.
Details of the Settlement
The Justice Department called Friday's agreement one of the largest sums ever obtained in a case related to COPPA, according to a press statement.
Under the terms of the deal, TikTok will immediately pay $300 million, followed by a further $100 million tied to a 2019 Federal Trade Commission order involving Musical.ly, a video-sharing app that ByteDance acquired in 2017 and merged with TikTok.
The 2024 lawsuit stemmed from that 2019 settlement. The Justice Department alleged that TikTok continued collecting children's data, including email addresses, phone numbers and location information, and failed to honor parents' requests to delete their children's information, all in violation of the earlier agreement, which had required the company to take specific steps to comply with COPPA.
TikTok's Response
In 2024, TikTok said many of the allegations concerned past events and practices that were factually inaccurate or had already been addressed.
Since the lawsuit began, TikTok has made a number of changes, including what the Justice Department described as comprehensive measures aimed at strengthening safeguards for younger users, improving age controls and enhancing parental oversight.
Wider Scrutiny of Tech Platforms
The settlement is the latest in a wave of lawsuits against major technology companies and social media platforms over allegations of harm to children.
Last year, TikTok announced it would spin off its U.S. assets to investors that are majority American, including Oracle and the private equity firm Silver Lake, a deal pushed by President Donald Trump.
CNN contacted TikTok for comment. No determination of liability was made regarding the allegations.
