TikTok has agreed to pay $400 million to resolve a Justice Department lawsuit alleging the platform illegally collected data from children. The settlement concludes a Biden-era enforcement action under federal privacy law.
TikTok reached the settlement with the US Justice Department over claims the social media app violated the Children's Online Privacy Protection Act (COPPA). The lawsuit accused TikTok of collecting personal information from users under 13 without proper parental consent.
The $400 million payment represents one of the largest penalties against a social media platform for child privacy violations. The settlement includes provisions requiring TikTok to implement stricter data collection practices and age verification measures.
Under the agreement, TikTok must establish better protections for younger users, including limiting what data can be collected from children and restricting how that information is used. The platform will also need to delete previously collected data from users under 13.
The case originated from complaints that TikTok's data practices posed risks to child safety and privacy. Federal regulators alleged the company failed to adequately disclose its data collection practices and did not obtain verifiable parental consent before gathering information from minors.
TikTok has faced mounting regulatory scrutiny in the United States over data privacy, algorithm transparency, and national security concerns. The company operates the popular short-form video app used by over 150 million Americans, including a significant young audience.
The settlement represents a compromise between the Justice Department and TikTok, avoiding what could have been a prolonged legal battle. TikTok did not admit wrongdoing as part of the agreement.
The case underscores broader efforts by US regulators to enforce stronger protections for children online. Federal agencies have increasingly targeted social media platforms over COPPA violations in recent years.
The settlement must still be reviewed by the Federal Trade Commission, which co-enforces COPPA alongside the Justice Department. The FTC has previously pursued separate enforcement actions against other tech platforms over similar privacy concerns.
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