TikTok and its parent company, ByteDance, have agreed to a $400 million settlement with the U.S. Department of Justice (DoJ) to resolve allegations of violating the Children’s Online Privacy Protection Act (COPPA). The agreement, announced by the DoJ, addresses a lawsuit filed in 2024 concerning the social media platform's handling of user data.
The DoJ's lawsuit alleged that TikTok knowingly permitted children under the age of 13 to create standard accounts, bypassing its restricted "Kids Mode." Furthermore, the company was accused of collecting and retaining personal information from these underage users without obtaining parental consent. The allegations also included claims that TikTok failed to delete accounts and associated data when requested by parents and maintained insufficient procedures for identifying and removing underage accounts from its platform.
This settlement follows a previous enforcement action against TikTok's predecessor, Musical.ly. In 2019, Musical.ly settled with the Federal Trade Commission (FTC) for $5.7 million over similar allegations of illegally collecting personal data from children under 13 without parental consent. Last year, the FTC referred a new investigation to the DoJ, asserting that TikTok continued to breach COPPA rules despite its prior commitment to compliance.
Under the terms of the new settlement, TikTok will immediately pay $300 million. An additional $100 million will be paid if a court vacates the earlier consent decree involving Musical.ly. This combined $400 million figure represents one of the largest settlements ever reached in COPPA cases.
The DoJ acknowledged that TikTok has implemented significant changes since 2024, specifically noting improvements in its ownership structure, data management practices, and legal compliance operations. The U.S. government also recognized TikTok's efforts to enhance its privacy retention policies, strengthen age-related controls, and improve parental oversight features on the platform.
Assistant Attorney General Brett A. Shumate emphasized the importance of companies adhering to laws governing the collection of children's personal information. He stated that the resolution secures a substantial monetary recovery and underscores the Department's commitment to ensuring children receive the full protections mandated by Congress.
It is important to note that the announcement clarifies that this settlement resolves only the allegations, and there has been no judicial determination that TikTok or ByteDance is liable for the alleged violations.
