TikTok to Pay $400 Million to Settle DOJ Child Privacy Lawsuit
- Department of Justice lawsuit accusing the social media company of violating the Children’s Online Privacy Protection Act, according to announcements made by federal authorities.
- Under the terms of the resolution, TikTok will disburse $300 million immediately.
- The federal agency acknowledged that TikTok has "undergone significant changes to its ownership, management, compliance functions, and privacy practices" since the initial 2024 complaint was filed in court,...
TikTok has agreed to pay $400 million to settle a U.S. Department of Justice lawsuit accusing the social media company of violating the Children’s Online Privacy Protection Act, according to announcements made by federal authorities. The Department of Justice announced on Friday that the penalty resolves a federal lawsuit filed in 2024 targeting TikTok’s handling of minor accounts. In the court filing, federal officials alleged that the platform collected data from children without notifying parents or securing proper consent. Prosecutors also stated that the company failed to delete minor accounts when requested to do so by parents.
Payment Structure and Prior Consent Decrees
Under the terms of the resolution, TikTok will disburse $300 million immediately. The remaining $100 million will be paid “upon entry of an order vacating a prior consent decree entered against TikTok’s predecessor, Musical.ly,” according to a press release issued by the Department of Justice. Federal authorities noted that the financial penalty stands as “one of the largest recoveries ever obtained in a COPPA case,” according to the Department of Justice statement. The Children’s Online Privacy Protection Act strictly regulates how digital platforms collect and handle personal data from users under the age of 13.
Corporate Changes and Compliance Measures
The federal agency acknowledged that TikTok has “undergone significant changes to its ownership, management, compliance functions, and privacy practices” since the initial 2024 complaint was filed in court, according to the Department of Justice. Federal officials reported that the company has “implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight,” according to the same release. The resolution follows a separate corporate restructuring in January, when a deal to place TikTok under a new joint ownership structure in the United States was finalized. Representatives for TikTok did not immediately respond to requests for comment regarding the settlement.
