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TikTok, ByteDance agree to $400 million US settlement over children’s privacy
Settlement resolves US allegations that the app illegally collected children’s data
WASHINGTON: A privacy row involving TikTok has come with a hefty price tag. TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to settle US Justice Department allegations that the short-video platform violated children’s online privacy, according to Reuters.
The settlement resolves a lawsuit filed by the Justice Department in 2024, which accused TikTok and ByteDance of failing to protect children’s personal information and illegally collecting data from users under the age of 13.
The case centred on the Children’s Online Privacy Protection Act, which requires online services directed at children to obtain parental consent before collecting personal information from users under 13.
Under the agreement, TikTok will pay $300 million immediately and a further $100 million once a court enters an order vacating a consent decree imposed by the Federal Trade Commission in 2019 on Musical.ly, the predecessor to TikTok.
Associate attorney general Stanley Woodward said the Justice Department’s priority was ensuring that children are protected online and that companies handling their personal information comply with legal requirements.
The latest agreement follows regulatory action against Musical.ly, which was acquired by ByteDance and later became TikTok.
In 2019, the FTC said Musical.ly had been aware that young children were using the platform but had failed to obtain parental consent before collecting their names, email addresses and other personal information. The company agreed to pay $5.7 million at the time.
The latest settlement comes as TikTok has made significant changes to its US operations, including its ownership structure, management, compliance functions and privacy practices.
In January, ByteDance agreed to establish a majority American-owned joint venture as part of efforts to secure US user data and avert a potential ban on the platform, which is used by more than 200 million Americans.
The Justice Department said the settlement would provide stronger protections for American families while avoiding the delay and uncertainty associated with prolonged litigation.
TikTok’s US joint venture said in a court filing that all users are required to provide their date of birth before accessing the platform.
The company also said it has developed age-moderation systems designed to identify users under 13 who provide a false age. Hundreds of personnel are trained to identify underage users, the filing said, with the company removing tens of thousands of accounts belonging to children.
The settlement puts a significant financial figure on years of scrutiny over how TikTok handles children’s data. More importantly, it signals that age verification and parental consent remain central pressure points for social media platforms operating in the US.
