TikTok Agrees to Massive $400 Million Settlement With Justice Department Over Child Privacy Violations

TikTok and its parent company, ByteDance, have agreed to a $400 million settlement with the US Justice Department to resolve litigation regarding children's privacy, marking one of the largest financial penalties of its kind.

The Justice Department initially filed a lawsuit against TikTok in 2024, alleging that the platform failed to prevent minors from joining and unlawfully gathered their personal information in violation of the Children’s Online Privacy Protection Act (COPPA). This action represents the latest in a series of intense regulatory scrutiny and legal challenges targeting major tech companies and social media platforms over child safety concerns.

According to a press release from the Justice Department, Friday’s agreement stands as "one of the largest recoveries ever obtained in a COPPA case." Under the terms of the settlement, TikTok will immediately disburse $300 million, followed by an additional $100 million tied to a 2019 Federal Trade Commission order involving Musical.ly, a video-sharing platform acquired by ByteDance in 2017 and subsequently merged with TikTok.

The 2019 agreement required the company to implement specific safeguards to comply with COPPA, but the 2024 lawsuit claimed that TikTok persisted in collecting children's data—including email addresses, phone numbers, and location details—while failing to honor requests from parents to remove their children's data.

While TikTok previously asserted in 2024 that numerous allegations "relate to past events and practices that are factually inaccurate or have been addressed," the Justice Department noted that the company has since introduced multiple changes. These include comprehensive measures aimed at strengthening protections for younger users, refining age-related controls, and boosting parental oversight.

Additionally, last year TikTok announced plans to spin off its American assets to predominantly American investors such as Oracle and private equity firm Silver Lake, following a push by President Donald Trump. CNN has contacted TikTok for comment, and no determination of liability has been established regarding the claims.