TikTok and its Chinese parent company, ByteDance, have agreed to pay $400 million to settle U.S. government allegations that the popular video-sharing app failed to properly protect children’s privacy.
The U.S. Justice Department sued TikTok and ByteDance in 2024, accusing the companies of collecting personal information from children under 13 without getting the required consent from their parents.
Associate Attorney General Stanley Woodward said protecting children online was a priority for the department and that companies handling children’s personal data must follow the law.
TikTok did not immediately comment on the settlement.
Under the agreement, TikTok will pay $300 million immediately and a further $100 million after a court order cancels a 2019 consent decree involving the Federal Trade Commission (FTC) and TikTok’s predecessor, Musical.ly.
The FTC had previously found that Musical.ly knew young children were using the app but failed to obtain parental permission before collecting information including names and email addresses.
The company paid a $5.7 million fine at the time.
The Justice Department said TikTok has since made significant changes to its ownership, management, compliance systems and privacy practices.
The department said the settlement would give American families stronger protections without the uncertainty and expense of a lengthy legal battle.
TikTok’s U.S. joint venture said in a court filing that users must provide their date of birth before using the platform.
The company also said it has developed systems to identify children under 13 who provide a false age.
TikTok said hundreds of employees are trained to detect underage users and that the platform removes tens of thousands of accounts belonging to children under 13.
The settlement comes as TikTok continues to face pressure in the United States over its Chinese ownership.
In January, ByteDance agreed to establish a majority American-owned joint venture aimed at protecting U.S. user data and avoiding a potential ban.
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