The United States Department of Justice has announced a $400 million settlement with TikTok, ByteDance, and affiliated entities over alleged violations of children's online privacy laws.
The DOJ said on Friday it had entered into the agreement over concerns about compliance with the Children's Online Privacy Protection Act, which requires services aimed at children to obtain parental consent before collecting personal information from users under the age of 13.
The department had originally sued TikTok and ByteDance in 2024.
According to the DOJ, TikTok knowingly permitted children to create regular accounts and then create and share short-form videos and messages with adults and other users on the platform. The company collected personal information from these children without obtaining consent from their parents.
Under the terms of the settlement, TikTok will pay $300 million immediately, with an additional $100 million to follow once a court cancels a previous settlement reached with TikTok's predecessor, Musical.ly.
"This settlement is a major victory for American children and parents," Associate Attorney General Stanley E. Woodward Jr. said in a news release. "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."
The DOJ said that since taking TikTok to court, the company has made significant changes and strengthened safeguards to protect children's privacy.
Assistant Attorney General Brett Shumate of the Justice Department's Civil Division said: "This settlement reflects substantial progress, secures a significant monetary recovery, and brings this matter to a successful conclusion."
In January, ByteDance agreed to create a majority US-owned joint venture to secure domestic data and avoid a ban on the app, which is used by more than 200 million Americans.
