TikTok has agreed to pay $400 million to settle a lawsuit brought by the US Department of Justice over allegations that the social media platform violated federal laws protecting children’s online privacy.
Under the agreement announced by the Justice Department on Friday, TikTok will pay $300 million immediately, with another $100 million to be paid after an earlier consent decree involving the company’s predecessor, Musical.ly, is formally vacated.
The case dates back to Musical.ly, which was acquired by ByteDance and later became TikTok. The Federal Trade Commission had previously found that the platform knew children under 13 were using the service but failed to obtain parental consent before collecting their personal information, including names and email addresses.
Musical.ly paid a $5.7 million penalty over those allegations.
The Justice Department filed its lawsuit against TikTok and its parent company, ByteDance, in 2024, accusing them of unlawfully collecting children’s personal data and failing to comply with federal requirements governing online services used by children.
The law requires platforms directed at children to obtain parental permission before collecting personal information from users under 13.
Associate Attorney General Stanley E Woodward Jr said protecting children online remained a priority for the department.
“The Justice Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations,” he said.
“This settlement is a major victory for American children and parents,” Woodward added.
TikTok did not immediately issue a response to the settlement.
The Justice Department said the agreement takes into account significant changes at TikTok since the lawsuit was filed, including changes to its ownership structure, management, compliance operations and privacy practices.
It said the settlement “ensures that American families continue to benefit from stronger protections without the delay and uncertainty of protracted litigation”.
In a separate court filing, TikTok’s US joint venture said users are required to provide their dates of birth when signing up for the platform. The company also said it uses age-detection technology designed to identify users under 13 who provide false information about their age.
According to the filing, TikTok has hundreds of employees trained to detect underage users and removes tens of thousands of accounts belonging to children.
The settlement comes as social media platforms face increasing scrutiny over the safety and privacy of young users, with several countries considering or implementing restrictions on children’s access to social media.
TikTok is also facing scrutiny in Ireland over content allegedly glorifying criminal behaviour. The company said it had removed flagged material and banned accounts that violated its policies.
Other major technology companies have faced similar action over children’s privacy. YouTube paid $170 million in 2019 over alleged violations of the Children’s Online Privacy Protection Act, while Epic Games agreed to pay $275 million in 2022 over related violations.
Meanwhile, Meta Platforms is facing a federal trial in California over allegations that Instagram violated COPPA and several state laws concerning children’s privacy.
