TikTok Agrees to Pay $400 Million to Settle Child Privacy Allegations
In a major legal settlement, TikTok has agreed to pay $400 million to resolve allegations made by the US Department of Justice (DOJ) regarding violations of the Children’s Online Privacy Protection Act (COPPA). The lawsuit, filed in 2024, charged TikTok with collecting data from minors without parental consent and failing to delete accounts when parents requested.
Settlement Breakdown and Obligations
According to the DOJ, TikTok will immediately pay $300 million as part of the settlement. An additional payment of $100 million will be made after a prior consent decree against TikTok’s predecessor, Musical.ly, is vacated. The DOJ describes this resolution as “one of the largest recoveries ever obtained in a COPPA case.”
TikTok’s Response and Changes
Since the lawsuit’s filing, TikTok has reportedly made significant changes to its ownership and management. They have also enhanced compliance functions and privacy practices, implementing substantial measures to protect younger users. These changes include improved age controls and increased parental oversight. However, TikTok has not yet released an official comment regarding the settlement.
Impact on TikTok
This settlement follows a recent restructuring deal in January, where a new joint ownership structure for TikTok in the US was established. The company is still dealing with the implications of these changes amid growing scrutiny over data privacy practices.
Reporting based on coverage first published by theverge.com.