TikTok and its former parent company ByteDance have agreed to pay $400 million to resolve allegations by the U.S. Department of Justice (DOJ) that they violated children's online privacy laws, according to multiple reports.
Key Takeaways
TikTok and ByteDance will pay $400 million to resolve DOJ allegations that they violated children's online privacy laws. The settlement includes immediate payment of $300 million and an additional $100 million upon entry of a court order vacating a prior consent decree against Musical.ly.
Source Claims Check
High Consensus| Claim | Status | Reason | |
|---|---|---|---|
| Settlement Amount | Broad Agreement | $400 million settlement | |
| Immediate Payment | Broad Agreement | $300 million immediate payment | |
| Additional Payment | Broad Agreement | $100 million additional payment upon court order | |
| Violations Claimed By Doj | Broad Agreement | Violated COPPA by collecting data without parental consent | |
| Tiktok Age Moderation | Broad Agreement | TikTok uses age-moderation systems to delete underage accounts |
The DOJ sued TikTok and ByteDance in 2024 for allegedly failing to protect children’s privacy and illegally collecting their information without parental consent, violating the Children’s Online Privacy Protection Act. The settlement includes an immediate payment of $300 million and an additional $100 million upon entry of a court order vacating a prior consent decree against TikTok's predecessor, Musical.ly.
The DOJ claimed that TikTok knowingly permitted children under 13 to create accounts and interact with adults on the platform since 2019, collecting personal information without parental consent. The FTC noted in its agreement that Musical.ly knew young children used the app but failed to obtain parental consent for data collection.
In January, ByteDance agreed to establish a majority American-owned joint venture to secure U.S. data and avoid a ban on the app, which is used by more than 200 million Americans. The DOJ noted that since the complaint was filed, TikTok has made significant changes to its ownership, management, compliance functions, and privacy practices.
TikTok stated it has developed sophisticated age-moderation systems that identify children under 13 who misrepresented their age. According to a court filing, TikTok employs hundreds of personnel trained in underage moderation and deletes tens of thousands of underage accounts as a result.
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