Key facts
- The U.S. Department of Justice and TikTok have agreed to a $400 million settlement.
- The settlement resolves allegations that TikTok violated children's online privacy laws.
- The lawsuit claimed TikTok collected personal information from children under 13 without parental consent.
- The settlement funds are reportedly designated for beautification projects in Washington D.C., including a triumphal arch.
- TikTok's Chinese owner, ByteDance, previously finalized a deal for a majority American-owned joint venture to secure U.S. data.
The U.S. Department of Justice and TikTok have agreed to a $400 million settlement to resolve allegations that the short-video app violated children's online privacy laws, according to reports. The lawsuit, filed in 2024, claimed that TikTok collected and retained personal information from millions of American children under the age of 13 without obtaining parental consent, thereby violating the Children's Online Privacy Protection Act.
The settlement funds are reportedly intended to be used for President Donald Trump's beautification projects in Washington D.C., including a proposed 250-foot triumphal arch. Sources familiar with the discussions indicated that White House officials have been deliberating the legality of using settlement money for such projects, which typically aid victims.
The Justice Department, joined by the Federal Trade Commission, alleged that TikTok knowingly allowed children to create regular accounts and share content on the platform. This settlement comes after TikTok's Chinese owner, ByteDance, finalized a deal in January to establish a majority American-owned joint venture to secure U.S. data and avoid a potential ban.