TikTok pays $400 million to the U.S. Department of Justice over child privacy violations
The electronic‑commerce giant ByteDance and its TikTok platform have agreed to pay a record settlement of $400 million to end a federal lawsuit alleging systematic misconduct in the collection of data from users under 13. The payment is one of the largest ever imposed for breaches of the Children’s Online Privacy Protection Act (COPPA), a federal law that has been the focal point of litigation against several tech companies.
The Justice Department sued TikTok in 2024, claiming the app gathered “vast amounts of data” from more than 170 million teenage users and failed to verify age and secure parental consent. These allegations mirror the case against Meta, in which states now sue the company for “targeting” and profiting from child users. Other platforms have faced similar penalties: YouTube paid $170 million in 2019 and Epic Games paid $275 million in 2022.
The settlement requires TikTok to pay $300 million immediately, with a further $100 million contingent on the government vacating a 2019 Federal Trade Commission consent decree. That decree, originally imposed on Musical.ly, demanded parental consent for children under 13 and included a $5.7 million fine for COPPA violations.
ByteDance’s ownership of TikTok’s U.S. operations has changed as well. The platform is now 81 % owned by a consortium of U.S. investors, with ByteDance retaining a 19 % stake. This shift was part of a broader divestment effort that grew out of political pressures in 2023 and 2024, with President Donald Trump and former President Joe Biden pushing for the company’s separation from its Chinese roots.
The agreement also acknowledges that TikTok has made substantial changes to its privacy practices, platform controls for young users, and data‑collection policies. While a spokesperson for TikTok did not publicly comment on the revised terms, officials say the company has “underwent significant changes” after the lawsuit was filed.
Citizens and parents can view the full settlement details in the Department of Justice release, which highlights the company’s compliance with COPPA and the broader push to protect children’s data online.
