The U.S. Department of Justice announced a $400 million settlement with TikTok, ByteDance and affiliates over allegations that they violated the Children’s Online Privacy Protection Act (COPPA).
Chinese technology company ByteDance’s social media platform TikTok allows users to create, watch and share short videos.
In 2024, the U.S. Department of Justice filed a lawsuit against TikTok and its parent company, alleging violations of 2019 COPPA.
In 2019, Musical.ly, TikTok’s predecessor, agreed to a $5.7 million settlement with the Federal Trade Commission (FTC) over allegations of illegally collecting personal information from users under the age of 13 without parental consent.
Last year, the FTC referred a new investigation to the Justice Department, alleging that TikTok continued to violate COPPA rules despite committing to comply with the rules in 2019.
As a result of the investigation, the Justice Department alleged that TikTok knowingly allowed children under 13 to create regular accounts outside of the restricted “Kids Mode,” collected and stored their personal information without parental consent, failed to delete accounts and data when parents requested it, and maintained inadequate procedures for locating and removing accounts for minors.
The newly announced agreement resolves the litigation, with the Justice Department now acknowledging that TikTok has made significant changes to its ownership, data management, and regulatory compliance since 2024.
The state also recognized that TikTok has made important changes to its privacy practices, improving age-related controls and strengthening parental supervision.
Under the settlement agreement, one of the largest ever in COPPA cases, TikTok will now pay $300 million immediately and an additional $100 million if a court overturns an earlier consent decision against its predecessor Musical.ly.
“Companies that collect personal data from children must comply with the law” said Assistant Attorney General Brett A. Shumate.
“This resolution provides significant financial recovery and reflects the Department’s commitment to ensuring children receive the full protections mandated by Congress.”
The announcement states that the settlement only resolves allegations and that there is no court decision as to whether TikTok or ByteDance are liable.
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