TikTok and ByteDance will pay $400 million to settle the US Justice Department’s children’s privacy case.
TikTok will pay $300 million immediately and another $100 million after a court order.
The settlement follows earlier US scrutiny of TikTok’s handling of children’s data.
TikTok Agrees To $400 Mn Deal In US: The Children’s Privacy Case Explained
TikTok and ByteDance will pay $400 million to settle US allegations that the short-video app failed to properly protect children’s privacy and collected their personal information without parental consent
Summary
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TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to settle allegations by the US Justice Department that the short-video app violated children’s online privacy rules, according to a Reuters report. The Justice Department had sued the companies in 2024, alleging that TikTok illegally collected personal information from children without obtaining parental consent.
The case involved a US law requiring online services aimed at children to obtain parental consent before collecting personal information from users under 13. The Justice Department said protecting children online and ensuring companies meet their legal obligations remained a priority.
Under the settlement, TikTok will pay $300 million immediately, while the remaining $100 million will be paid after a court order vacates a 2019 consent decree involving TikTok’s predecessor, Musical.ly.
What The US Case Was About
The Federal Trade Commission had previously found that Musical.ly knew young children were using the platform but failed to obtain parental consent before collecting information such as names, email addresses and other personal details. The company paid a $5.7 million fine in that case.
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The latest settlement builds on those earlier concerns over the handling of children’s information. The US government also noted that TikTok has undergone significant changes in ownership, management, compliance functions and privacy practices since the latest complaint was filed.
The Justice Department said the settlement would strengthen protections for American families while avoiding the delay and uncertainty of a prolonged legal battle.
TikTok’s New Child Safety Measures
TikTok’s US joint venture said in a court filing that users are required to enter their date of birth to access the platform. The company also said it has developed age-moderation systems designed to identify children under 13 who provide a false age.
The filing said TikTok has hundreds of employees trained in underage moderation and that the company deletes tens of thousands of accounts belonging to underage users.
The settlement comes as TikTok continues to operate under increased US scrutiny. In January, ByteDance agreed to establish a majority American-owned joint venture aimed at securing US data and avoiding a potential ban on the app, which is used by more than 200 million Americans.
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