TikTok Settles Legal Dispute with the US over Children’s Privacy, Agrees to Pay $400 Million

TikTok has reached an out-of-court settlement with the United States Department of Justice, agreeing to pay the US government $400 million. The agreement brings an end to legal proceedings over allegations that the platform violated federal rules protecting children’s privacy.

US authorities linked the case to the collection of personal data from children under the age of 13 without the required notice to and authorization from their parents or guardians.

The proceedings began in 2024, when the Department of Justice and the Federal Trade Commission (FTC) jointly filed a lawsuit against TikTok. In that case, the platform was accused of putting the safety and privacy of millions of minors at risk.

According to data presented by the authorities, the app had allowed users under the age of 13 to create accounts, while their data was collected without the required parental consent.

The allegations also included accounts opened in “Kids Mode.” According to the case, these profiles had also recorded children’s email addresses and other personal information.

The case ranks among the most significant enforcement actions under COPPA, which prohibits online platforms from collecting children’s personal data without parental consent.

The agreement also covers ByteDance, TikTok’s Chinese parent company. After selling part of its stake at the beginning of this year, ByteDance owns 19.9% of TikTok’s shares in the US, as part of efforts to avoid the platform being banned by the Trump administration.

US authorities had also taken action against Musical.ly under COPPA in 2019. ByteDance bought the platform in 2017 and later merged it with TikTok.

Meanwhile, TikTok continues to face scrutiny from European regulators.

In July, the European Union criticized the platform for shortcomings in protecting minors. According to the EU, account settings could leave young users exposed to various risks, including cyberbullying.

The Digital Services Act (DSA) requires minors’ accounts to have strong safety measures enabled by default and to be visible only after the necessary permission has been obtained.

In its preliminary assessment, the European Union stated that the settings currently used by TikTok do not meet the specified requirements. This exposes the company to the risk of substantial fines.