DOJ Secures $400 Million Settlement From Social Media Giant In Children’s Privacy Case

The U.S. Justice Department on Friday announced that it had secured a $400 million settlement with TikTok, ByteDance, and affiliated entities to resolve litigation over compliance with the Children’s Online Privacy Protection Act (COPPA) and its regulations.

Under the agreement, the companies will pay $300 million immediately and an additional $100 million upon entry of a court order vacating a prior consent decree against TikTok’s predecessor, Musical.ly. The DOJ described the settlement as one of the largest recoveries ever obtained in a COPPA case.

The underlying lawsuit was filed in the U.S. District Court for the Central District of California and handled by the Civil Division’s Enforcement and Affirmative Litigation Branch on referral from the Federal Trade Commission. The claims resolved are allegations only, with no determination of liability.

“This settlement is a major victory for American children and parents. 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,” said Associate Attorney General Stanley E. Woodward Jr.

COPPA is a federal law from 1998 that requires operators of websites or online services directed to children under 13, or those that have actual knowledge they are collecting personal information from such children, to provide notice to parents and obtain verifiable parental consent before collecting, using, or disclosing that information. Personal information can include names, email addresses, phone numbers, and other data.

Operators must also honor parents’ requests to delete their children’s information and accounts.

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TikTok reached a $400 million settlement with the U.S. after being accused of illegally gathering children’s information, per NYT

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In August 2024, the Justice Department filed a civil lawsuit alleging that TikTok and ByteDance violated COPPA and a 2019 court order. The complaint stated that from 2019 onward, the companies knowingly permitted children under 13 to create regular TikTok accounts, allowing them to create, view, and share short-form videos and messages with adults and others.

It further alleged that the companies collected and retained a wide variety of personal information from these children without notifying or obtaining consent from their parents. Even for accounts in “Kids Mode,” a limited version intended for younger users, the complaint claimed unlawful collection of email addresses and other personal information. When parents requested deletion of accounts and data, the companies frequently failed to honor those requests, according to the allegations. The companies were also said to have deficient internal policies for identifying and deleting accounts created by children.

This 2024 action followed a 2019 settlement involving Musical.ly, which ByteDance acquired and later merged into TikTok. Musical.ly paid a $5.7 million civil penalty—the largest COPPA penalty at the time—and agreed to a consent decree requiring ongoing COPPA compliance, including measures related to parental consent and content removal for underage users. The 2024 lawsuit alleged continued noncompliance with that order.

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