TikTok to Pay $400 Million to Resolve Child Privacy Lawsuit

The US Department of Justice announced on Friday that TikTok will pay $400 million to resolve a lawsuit from 2024 regarding alleged violations of the Children’s Online Privacy Protection Act (COPPA). The lawsuit claimed that TikTok collected data from minors without parental notification or consent and failed to delete accounts when requested by parents.

As part of the settlement, TikTok will pay $300 million upfront, with an additional $100 million to be paid once a previous consent decree against its predecessor, Musical.ly, is vacated, according to the DOJ. This settlement marks one of the largest recoveries in a COPPA case to date.

The DOJ highlighted that TikTok has made significant changes in its ownership, management, compliance, and privacy practices since the lawsuit was initiated. The platform has also implemented extensive measures to enhance protections for younger users, improve age verification processes, and bolster parental controls.

TikTok has not yet responded to requests for comment. In January, the transition to a new joint ownership structure for TikTok in the US was finalized.