DOJ and TikTok Settle for $400 Million Over Children’s Privacy Violations

The Justice Department has come to a $400 million settlement with TikTok regarding accusations that the well-known video-sharing app breached children’s online privacy rights.

During the Biden administration, the DOJ brought allegations against TikTok and its parent company, ByteDance, claiming they violated the Children’s Online Privacy Protection Act (COPPA). This law prohibits the collection, use, or sharing of personal information from children under 13 without obtaining parental consent first.

“I think this settlement marks a significant win for American children and their parents,” said Associate Attorney General Stanley Woodward in a statement. “The Department aims to ensure that children are safe online and that companies handling their personal data comply with legal requirements.”

Woodward also added, “This agreement not only secures a substantial recovery but also reaffirms the protections that families rightfully expect and deserve.”

The lawsuit, initiated in August 2024, claimed TikTok retained a broad range of children’s personal information without the necessary parental permissions. This was concerning, especially for kids who had registered for TikTok’s “Kid Mode,” meant specifically for users under 13.

The DOJ also asserted that TikTok didn’t remove certain children’s accounts even when parents requested it.

This civil case is being dismissed with prejudice, indicating the DOJ cannot file the same COPPA claim against TikTok and ByteDance in the future.

The settlement follows an agreement made by ByteDance in January to form a majority American-owned joint venture, which aimed to avert a U.S. ban on TikTok, a platform that boasts over 200 million users in the country.

In its announcement about the settlement, the DOJ highlighted that TikTok has made considerable modifications to its ownership, management, compliance practices, and privacy protocols since the lawsuit was filed.

The Trump administration had previously acknowledged that TikTok and ByteDance have implemented extensive measures to bolster protections for younger users, enhance age-related controls, and improve parental oversight following these ownership changes.

“These improvements have substantially advanced the public interests that the Department’s litigation is grounded on and have fortified protections for millions of American families,” stated the DOJ.

As of now, TikTok hasn’t provided any immediate comments regarding the settlement.