TikTok agrees to $400m settlement to resolve US children’s privacy litigation

The DoJ sued TikTok and its former parent company in August 2024 for allegedly failing to protect children’s privacy and collecting their information

⁠TikTok and its Chinese former parent company ByteDance on Friday agreed to a $400m settlement to resolve the US Department of Justice’s allegations that the short-form video app ⁠violated children’s online ⁠privacy.

The justice ​department sued TikTok and ByteDance in 2024 for allegedly failing to protect children’s privacy and illegally collecting their information. The defendants were accused ⁠of violating a law requiring online services aimed at children to obtain parental consent to collect personal information from users under age 13.

Associate attorney ⁠general Stanley Woodward said the justice department’s priority “is ensuring that children are protected online and that ​companies entrusted with their personal information meet ‌their legal obligations”.

Under the settlement, TikTok will pay $300m immediately and an additional $100m upon ‌entry of an order vacating a prior consent decree entered with the Federal Trade Commission (FTC) in 2019 against TikTok’s predecessor, Musical.ly. As part of the consent agreement, the FTC said that TikTok, then known as Musical.ly, knew that young children used the app and had failed to get parental consent to collect their names, email addresses ‌and other personal information. It paid a fine of $5.7m.

In January, ByteDance agreed to establish a majority American-owned joint venture to secure US data ​and avoid a ban on the app used by more than 200 million Americans. The government noted that since the complaint was filed, TikTok has undergone significant changes to its ownership, management, compliance functions and privacy practices.

DoJ said the settlement “ensures that American families continue to benefit ⁠from stronger protections without the delay and uncertainty of protracted litigation”. The TikTok ​US joint venture said ​in a court filing it requires ​all users to enter their date of birth to use the ​site.

TikTok said it ‌has developed sophisticated ​age-moderation systems that identify ​children under 13 who misrepresented their age. That court filing said that TikTok has hundreds of personnel trained in underage moderation and, as a result, deletes tens of thousands underage accounts.