TikTok agrees to $400m US privacy settlement

TikTok and its Chinese parent company, ByteDance, have agreed to pay $400 million to settle allegations by the US

TikTok and its Chinese parent company, ByteDance, have agreed to pay $400 million to settle allegations by the US Department of Justice that the short-video platform failed to properly protect children’s personal information.

The settlement resolves a lawsuit filed by the Justice Department in 2024. US authorities accused TikTok and ByteDance of violating federal rules designed to protect children under the age of 13 from the collection of their personal data without parental permission.

Under the agreement, TikTok will pay $300 million immediately. Another $100 million will be paid after a court order formally ends an earlier consent decree involving the Federal Trade Commission and TikTok’s predecessor, Musical.ly.

The case is linked to allegations that Musical.ly knew children were using the platform but failed to obtain the required consent from their parents before collecting personal information.

The information allegedly collected included children’s names, email addresses and other personal details. Musical.ly had previously agreed to pay a $5.7 million penalty in connection with the FTC action.

Associate Attorney General Stanley Woodward said protecting children online remained a key priority for the Justice Department. He stressed that companies handling children’s personal information must comply with legal requirements.

The settlement comes as TikTok continues to make changes to its US operations. Authorities said the company has undergone major changes in ownership, management, compliance systems and privacy practices since the lawsuit was filed.

TikTok’s US joint venture has also introduced stricter age-verification measures. According to a court filing, users are required to provide their date of birth before accessing the platform.

The company said it had developed systems designed to identify users under 13 who provide false information about their age. It also said hundreds of employees are involved in monitoring accounts for possible underage users.

The company claims these measures have resulted in the removal of tens of thousands of accounts belonging to underage users.

The Justice Department said the settlement would strengthen protections for American children and families while avoiding a lengthy legal battle.

The agreement also comes amid broader efforts to determine TikTok’s future in the United States. In January, ByteDance agreed to create a joint venture with majority American ownership as part of measures aimed at addressing US concerns over data security and avoiding a potential ban.