The United States Department of Justice has reached a $400 million settlement with TikTok, its parent company ByteDance and related entities to resolve allegations that the social media platform violated federal children’s online privacy laws.
Under the agreement, TikTok will pay $300 million immediately. An additional $100 million will be paid once a court vacates a previous consent decree that applied to the company’s predecessor, Musical.ly.
The Justice Department described the deal as one of the largest recoveries ever obtained in a case brought under the Children’s Online Privacy Protection Act (COPPA).
“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley E. Woodward Jr. said. “The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”
The settlement ends a lawsuit the department filed in 2024 in the U.S. District Court for the Central District of California. Officials said that since the complaint was lodged, TikTok has introduced significant changes to its ownership structure, management, compliance systems and privacy practices. These include stronger safeguards for younger users, improved age-related controls and enhanced parental oversight tools.
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said the outcome underscores companies’ legal duties when handling children’s data.
“Companies that collect children’s personal information must comply with the law,” Shumate said. “This resolution secures a significant monetary recovery and reflects the Department’s commitment to ensuring children receive the full protections that Congress mandated.”
COPPA requires operators of websites and online services directed at children, or those with actual knowledge that they collect personal information from children, to obtain parental consent and give parents greater control over such data.
The department said the settlement takes into account the compliance improvements TikTok has already implemented, allowing families to benefit from stronger protections without the delays of prolonged litigation. The case was handled by the Civil Division’s Enforcement and Affirmative Litigation Branch following a referral from the Federal Trade Commission.
