Key facts
- TikTok and ByteDance will pay $400 million to the U.S. to settle a child privacy lawsuit.
- The lawsuit alleged the collection of vast amounts of data on users under 13.
- TikTok will pay $300 million immediately and an additional $100 million later.
- The settlement is one of the largest ever for violations of children's privacy.
TikTok and its former parent company ByteDance have agreed to pay $400 million to the U.S. to settle allegations that the short-form video app violated children's online privacy. The Department of Justice sued the companies in 2024, accusing them of failing to protect children's privacy and illegally collecting their information, which violated a law requiring parental consent for collecting personal data from users under 13.
Associate Attorney General Stanley Woodward stated the department's priority is ensuring children are protected online and that companies meet their legal obligations. Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon the vacating of a 2019 consent decree with the Federal Trade Commission against Musical.ly, TikTok's predecessor. Musical.ly had previously paid a $5.7 million fine for similar violations.
In January, ByteDance agreed to establish a majority American-owned joint venture to secure U.S. data. The government noted TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices. TikTok stated it has developed age-moderation systems to identify children under 13 who misrepresent their age, deleting tens of thousands of such accounts.