TikTok agrees to $400 million settlement over child privacy

Coverage from Security Affairs indicates that TikTok has agreed to a $400 million settlement with the U.S. Department of Justice to resolve allegations of violating child privacy laws.

The settlement addresses claims that TikTok illegally collected data from users under 13 and knowingly allowed them to create accounts, violating the Children's Online Privacy Protection Act (COPPA). The lawsuit, filed in 2024, accused the company and its parent ByteDance of these practices, particularly concerning data collected through its "Kids Mode." As part of the agreement, TikTok will pay $300 million immediately and an additional $100 million upon the vacating of a prior consent decree against its predecessor, Musical.ly.

This resolution is considered one of the largest recoveries in a COPPA case. The Department of Justice acknowledged TikTok's significant changes in ownership, management, compliance, and privacy practices since the lawsuit was filed, including enhanced safeguards for younger users and improved age verification. These improvements were cited as factors in reaching the settlement.

Source: Security Affairs