The settlement, reached with the US Department of Justice, resolves allegations that TikTok and its parent company, ByteDance, violated the Children’s Online Privacy Protection Act (COPPA), a federal law requiring online services to obtain verifiable parental consent before collecting personal information from children under 13.
Under the agreement, TikTok will pay $300 million immediately, with another $100 million to be paid after a court order vacates a 2019 consent decree involving Musical.ly, the platform TikTok’s predecessor.
The government sued TikTok and ByteDance in 2024, alleging that the platform collected children’s personal data even when they used a “Kids Mode” intended for users under 13. The information allegedly included email addresses and other personal details.
The case also builds on a dispute that began with Musical.ly, which ByteDance acquired in 2017 before merging the service into TikTok. In 2019, the Federal Trade Commission said Musical.ly had known that young children were using the platform but failed to obtain parental consent for collecting their information. The company paid $5.7 million at the time.
TikTok says it has strengthened age controls
The Justice Department said TikTok has made changes to its ownership, management, compliance operations and privacy practices since the 2024 lawsuit was filed.
The company has also introduced stronger controls aimed at identifying and removing underage users.
In a court filing, TikTok’s US joint venture said all users must provide their date of birth to access the platform. It also said it has hundreds of employees working on age moderation and removes tens of thousands of accounts identified as belonging to users under 13.
The settlement comes after a major restructuring of TikTok’s US operations. A majority-American-owned joint venture was established to handle the platform’s US business and protect American user data, with ByteDance retaining a minority stake.
TikTok did not immediately comment on the settlement.
Associate Attorney General Stanley Woodward said the Justice Department’s priority was ensuring that companies handling children’s personal information meet their legal obligations.
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The settlement adds TikTok to a growing list of major technology companies that have faced US penalties over children’s privacy. Google-owned YouTube paid $170 million in 2019 to settle allegations involving COPPA violations, while Epic Games agreed to pay $275 million in 2022.
The $400 million agreement now puts an end to the federal government’s children’s privacy case against TikTok, while placing renewed attention on how social media platforms determine the age of their users and protect children on their services.
