The U.S. Department of Justice has announced a $400 million settlement with TikTok, ByteDance, and their affiliates over alleged violations of the Children’s Online Privacy Protection Act (COPPA).
Owned by Chinese technology company ByteDance, TikTok is a popular social media platform that allows users to create, watch, and share short-form videos.
In 2024, the Department of Justice sued TikTok and ByteDance, alleging that the companies had violated COPPA since 2019 by collecting and retaining children’s personal information without proper parental consent.
The case follows a 2019 agreement involving TikTok’s predecessor, Musical.ly. At the time, Musical.ly agreed to pay $5.7 million to settle Federal Trade Commission allegations that it had illegally collected personal information from children under 13 without obtaining parental consent.
In 2024, the FTC referred a new investigation to the Department of Justice after alleging that TikTok continued to violate COPPA despite its previous commitment to comply with the law.
According to the Department of Justice, TikTok knowingly allowed children under 13 to create standard accounts outside its restricted “Kids Mode.” The company was also accused of collecting and retaining children’s personal information without parental consent, failing to delete accounts and data when requested by parents, and maintaining insufficient processes for identifying and removing accounts belonging to minors.
The newly announced agreement resolves the lawsuit. The Department of Justice said TikTok has made significant changes to its ownership structure, data management systems, and compliance practices since 2024.
The department also acknowledged improvements to TikTok’s privacy practices, age-related controls, and systems for providing parents with greater oversight.
Under the settlement, which the Department of Justice described as the largest ever in a COPPA case, TikTok will pay $300 million immediately. The company will pay an additional $100 million if a court vacates an earlier consent decree involving Musical.ly.
“Companies that collect personal information from children must comply with the law,” said Assistant Attorney General Brett A. Shumate.
“This resolution secures significant financial recovery and reflects the Department’s commitment to ensuring that children receive the full protections mandated by Congress.”
The Department of Justice emphasized that the settlement resolves the allegations but does not represent a judicial determination that TikTok or ByteDance violated the law.
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Source: www.bleepingcomputer.com