TikTok and its parent company, ByteDance, agreed Friday to a $400 million TikTok privacy settlement resolving US Justice Department allegations that the platform unlawfully collected personal information from children under 13.
The Justice Department sued the companies in 2024, alleging violations of federal requirements that online services obtain parental consent before collecting personal data from children under 13.
Under the settlement, TikTok will pay $300 million immediately and an additional $100 million if a court vacates a 2019 Federal Trade Commission consent decree involving TikTok’s predecessor, Musical.ly.
That earlier FTC case alleged Musical.ly knowingly collected names, email addresses and other information from children without parental consent. The company paid a $5.7 million penalty under the agreement.
Associate Attorney General Stanley Woodward said the Justice Department aimed to ensure companies holding children’s personal information meet their legal obligations.
The Justice Department said TikTok had made changes to its ownership, management, compliance functions and privacy practices since the complaint was filed.
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A TikTok US joint venture court filing said users must provide their date of birth and that the platform uses age-moderation systems to identify accounts belonging to children under 13. It said trained personnel remove tens of thousands of underage accounts. TikTok did not immediately comment on the settlement.
