Millions of young social media users in the United States could soon see safer digital environments after TikTok agreed to pay $400 million to settle a major child privacy lawsuit.
The US Department of Justice (DOJ) announced the landmark deal to resolve allegations that TikTok and its parent company ByteDance violated the Children's Online Privacy Protection Act (COPPA). The federal law, enacted in 2000, requires online platforms to notify parents and get their consent before collecting personal data from children under 13.
According to government officials, TikTok collected vast amounts of personal data from millions of young users without parental permission. The lawsuit, filed in 2024, also stated that the platform failed to delete accounts when parents requested it.
Under the terms of the agreement, TikTok will pay $300 million immediately to the US government. The company will pay the remaining $100 million once a previous legal agreement involving Musical.ly—TikTok's predecessor app—is formally closed.
US officials highlighted that TikTok has already made major changes to improve safety since the lawsuit began. These include stronger age checks, improved safety controls for young users, and enhanced tools for parental oversight.
The $400 million payout is one of the largest recoveries ever obtained in a child privacy case. Other major technology companies have also faced penalties for similar issues in recent years, including Google's YouTube, which paid $170 million in 2019, and Epic Games, which paid $275 million in 2022.