TikTok and its parent company ByteDance have agreed to pay US$400 million to settle a US Justice Department lawsuit over alleged violations of children’s online privacy laws.
TikTok will pay US$300 million immediately, with the remaining US$100 million due after a court dismisses an earlier consent decree involving its predecessor, Musical.ly, the department said.
The Justice Department sued TikTok and ByteDance in 2024. It alleged the platform allowed children under 13 to create accounts and failed to delete their accounts and personal data when requested by parents.
Associate Attorney General Stanley Woodward Jr said the settlement would strengthen protections for children and ensure companies meet their legal obligations when handling personal information.
The department added that TikTok had made significant changes to its ownership, management, compliance functions and privacy practices since the lawsuit was filed.
TikTok is now controlled by TikTok USDS Joint Venture, which is majority-owned by US investors. The change followed a 2024 law requiring ByteDance to divest from the app or face a US ban.
The legislation was driven by national security and privacy concerns linked to ByteDance’s ties to China.
