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TikTok Reaches $400 Million Settlement in Child Privacy Lawsuit

TikTok will pay $400 million to settle a lawsuit filed by the U.S. Department of Justice over alleged violations of the Children's Online Privacy Protection Act (COPPA). The settlement, announced by the DOJ on Friday, represents one of the largest recoveries ever secured under the children's privacy law.

The DOJ alleged that TikTok collected personal data from children without notifying parents or obtaining proper consent. The agency also claimed that the platform failed to delete accounts when parents requested their removal. The case traces back to TikTok's predecessor, Musical.ly, which merged with TikTok in 2018.

Under the settlement terms, TikTok will pay $300 million immediately and an additional $100 million "upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly," according to the DOJ press release. The DOJ noted that TikTok has made significant strides in privacy protections since the 2024 lawsuit was filed.

Sources