News

TikTok and ByteDance Agree to $400 Million Settlement Over Children’s Privacy Allegations

TikTok and ByteDance have agreed to pay $400 million to resolve a federal lawsuit over allegations that the popular social media platform violated children’s online privacy protections.

The U.S. Department of Justice announced the settlement on August 21, calling it one of the largest recoveries ever obtained in a case involving the Children’s Online Privacy Protection Act, better known as COPPA. Under the agreement, TikTok will pay $300 million immediately and another $100 million if a court enters an order vacating an earlier consent decree involving TikTok predecessor Musical.ly.

For parents, the case provides a closer look at the federal rules governing how online platforms can collect and retain information belonging to children under 13.

What the Government Alleged TikTok Did

The settlement stems from a lawsuit filed by the Justice Department and Federal Trade Commission in August 2024 in the U.S. District Court for the Central District of California.

In its original complaint, the government alleged that TikTok knowingly allowed children to create regular TikTok accounts and collected personal information from those users without properly notifying or obtaining consent from their parents. The government also alleged that TikTok sometimes failed to delete children’s accounts and personal information when parents requested it.

Federal officials further alleged that TikTok’s internal procedures for identifying and removing accounts belonging to children were inadequate. Even TikTok’s “Kids Mode,” which was designed for users under 13, allegedly resulted in the collection and retention of certain information, including children’s email addresses.

The settlement resolves those allegations without a determination of liability.

What COPPA Requires From Online Companies

COPPA provides specific privacy protections for children younger than 13 who use websites and online services.

Among other requirements, covered online operators generally must provide notice and obtain verifiable parental consent before knowingly collecting, using or disclosing personal information from children under 13. Parents also have rights involving information collected about their children, including the ability to request deletion in applicable circumstances.

Those requirements have become increasingly relevant as children spend more time on social media, gaming platforms, apps and other digital services where personal information may be collected.

The TikTok case is particularly notable because Musical.ly, which later became TikTok, had already been subject to a 2019 court order requiring measures intended to ensure COPPA compliance.

TikTok Has Made Changes Since the Lawsuit Was Filed

The Justice Department said TikTok has undergone significant changes since the federal complaint was filed in 2024.

Those changes have involved the company’s ownership, management, compliance functions and privacy practices. According to DOJ, TikTok has also implemented measures designed to improve safeguards for younger users, strengthen age-related controls and provide greater parental oversight.

Federal officials said those developments helped advance the public-interest goals behind the lawsuit and strengthen protections for American families.

The government said resolving the litigation now provides a substantial monetary recovery while allowing families to benefit from compliance improvements already implemented rather than waiting through potentially lengthy litigation.

Why the Settlement Matters for Parents

The $400 million figure will likely grab attention, but parents may find the privacy issues behind the settlement more useful.

Children can disclose significant amounts of information online, sometimes without fully understanding what is being collected or how it may be used. COPPA is intended to give parents greater control over the collection of personal information from children under 13 and impose obligations on companies operating services covered by the law.

Parents of younger TikTok users may want to review their child’s account settings, age information and available parental controls rather than assuming an app automatically knows a user’s correct age.

Families should also periodically review what apps their children use and what personal information those services request.

The Case Ends Without a Finding of Liability

The Justice Department emphasized that the claims resolved through the settlement are allegations and that there has been no determination of liability.

The case was handled by the Justice Department’s Civil Division Enforcement and Affirmative Litigation Branch following a referral from the Federal Trade Commission.

Associate Attorney General Stanley E. Woodward Jr. described the resolution as a significant outcome for children and parents, while Assistant Attorney General Brett A. Shumate emphasized companies’ legal responsibilities when collecting children’s personal information.

For families, the case is also a reminder that children’s privacy settings are worth revisiting as apps, devices and online habits change.

What to Read Next

6 Things Men Should Have in Order Before Their Parents Start Needing Help

Single Dads and SNAP Benefits: The Overlooked Struggle in America’s Safety Net

The “Dad Audit”: 5 Things Around the House That Quietly Become Expensive Problems