TikTok reaches $400 million settlement with US over children’s privacy case

WASHINGTON — TikTok has reached a $400 million settlement with the U.S. Department of Justice, ending a lawsuit that accused the social media platform and its parent company of violating federal protections governing children’s online privacy.The Justice Department said Friday that TikTok will pay $300 million immediately, with an additional $100 million to be paid after an order vacates an earlier consent decree involving Musical.ly, TikTok’s predecessor.“This settlement is a major victory for American children and parents,” U.S. Associate Attorney General Stanley E. Woodward Jr. said.“The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations,” he added.The Justice Department filed the lawsuit in 2024 against TikTok and its China-based parent company ByteDance, alleging violations of federal law requiring websites and apps directed at children to obtain parental consent before collecting personal information from users under 13.Authorities also alleged that the companies failed to honor some parents’ requests to delete their children’s accounts and retained accounts despite knowing that they belonged to children under 13.The settlement comes after significant changes to TikTok’s operations in the United States.In January, TikTok signed agreements with major investors, including Oracle, Silver Lake and Emirati investment firm MGX, to establish a new joint venture overseeing its U.S. operations.TikTok representatives did not immediately comment on the settlement.The case comes amid growing scrutiny of social media companies over the safety and privacy of children and teenagers.Social media platforms are facing a growing number of lawsuits in the United States, while governments around the world have introduced or considered restrictions on young people’s access to social media.Meta Platforms, the parent company of Instagram and Facebook, is currently on trial in federal court in Oakland, California, over allegations involving the Children’s Online Privacy Protection Act and state laws.