TikTok and its Chinese parent company ByteDance have agreed to a $400 million settlement with the US Department of Justice over allegations that the short-video platform violated children’s online privacy.
Under the agreement, TikTok will pay $300 million immediately and a further $100 million after a court order vacates a previous consent decree involving the Federal Trade Commission and TikTok’s predecessor, Musical.ly.
US privacy allegations
The Justice Department filed its lawsuit against TikTok and ByteDance in 2024. Prosecutors alleged that the companies failed to protect children’s personal information and illegally collected data from users under the age of 13.
US law requires online services aimed at children to obtain parental consent before collecting personal information from users under 13.
Associate Attorney General Stanley Woodward said protecting children online remains a priority for the Justice Department. He added that companies handling children’s personal information must comply with their legal responsibilities.
TikTok did not immediately comment on the settlement.
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Earlier Musical.ly case
The settlement also addresses a previous FTC case involving Musical.ly, which TikTok later acquired and rebranded.
The FTC had alleged that Musical.ly knew young children were using the platform but failed to obtain parental consent before collecting their names, email addresses and other personal information. The company paid a $5.7 million fine in that case.
The latest agreement comes as TikTok has made changes to its ownership structure, management, compliance operations and privacy practices.
TikTok strengthens age protections
TikTok has told a US court that all users must provide their date of birth when signing up for the platform.
The company also said it has developed age-moderation systems designed to identify children under 13 who provide false information about their age.
According to the court filing, TikTok employs hundreds of personnel trained in underage moderation. The company says those efforts result in the removal of tens of thousands of underage accounts.
US operations remain under scrutiny
The settlement comes amid wider US scrutiny of TikTok and ByteDance. In January, ByteDance agreed to establish a majority American-owned joint venture focused on securing US user data and addressing concerns that could otherwise lead to a US ban.
The Justice Department said the settlement will provide stronger protections for American families while avoiding the delays and uncertainty associated with prolonged litigation.
