The US Department of Justice has reached a $400 million settlement with TikTok, ByteDance, and affiliated entities over violations of children’s online privacy laws.
The settlement resolves litigation concerning compliance with the Children’s Online Privacy Protection Act, commonly known as COPPA, and its implementing regulations.
Under the terms of the agreement, TikTok will pay $300 million immediately, with an additional $100 million due upon entry of a specific court order.
That second payment is contingent on an order vacating a prior consent decree entered against TikTok’s predecessor company, Musical.ly.
The settlement represents one of the largest financial recoveries ever obtained in a COPPA enforcement case, marking a significant moment in US digital privacy law.
In 2024, the DOJ filed a lawsuit against TikTok and its parent company ByteDance, alleging COPPA violations dating back to 2019.
The roots of TikTok’s legal troubles with children’s privacy stretch back to when Musical.ly agreed to a $5.7 million FTC settlement over illegally collecting personal data from children under 13 without parental consent.
The Federal Trade Commission later referred a new investigation to the DOJ, alleging that TikTok had continued to breach COPPA rules despite its earlier commitments to comply.
The DOJ acknowledged in the settlement that TikTok has made significant changes to its ownership, data management, and legal compliance operations since 2024, including improvements to privacy retention practices, age-related controls, and parental oversight tools.
“This settlement is a major victory for American children and parents,” said Associate Attorney General Stanley E. Woodward Jr., adding that “the Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations.”
Woodward stated the resolution “secures a substantial recovery while reinforcing the protections that families expect and deserve,” signalling the administration’s intent to hold tech platforms accountable.
The agreement arrives as social media companies across the industry face a growing wave of lawsuits related to children’s safety and privacy in the US and internationally.
A rising number of countries are moving to restrict or outright ban young children and teenagers from accessing social media platforms, reflecting mounting public and legislative pressure.
TikTok is not alone in facing legal jeopardy over COPPA compliance, with Meta Platforms currently on trial in federal court in Oakland, California, over similar allegations involving Instagram.
Meta faces claims that it violated COPPA alongside various state statutes, underscoring the broad regulatory reckoning now confronting the social media industry over how it handles underage users.