Technology
TikTok agrees to $400 million settlement with US over child privacy allegations
The deal resolves a 2024 Justice Department lawsuit alleging violations of federal regulations on collecting data from children under 13.
The short version
- TikTok and parent firm ByteDance agreed to pay $400 million to resolve a 2024 U.S. federal lawsuit regarding children's data privacy.
- The initial complaint alleged the platform collected data from users under 13 without required parental consent and failed to delete accounts upon request.
- TikTok will pay $300 million immediately, with the remaining $100 million contingent on a court order vacating an earlier consent decree involving Musical.ly.
Key facts
- The U.S. Department of Justice announced a $400 million settlement with TikTok and ByteDance to resolve a 2024 lawsuit alleging violations of the Children's Online Privacy Protection Act (COPPA).[BBC News · Associated Press · The Verge]
- The payment structure requires an immediate $300 million payment, followed by $100 million once a 2019 consent decree involving TikTok predecessor Musical.ly is vacated.[BBC News · Associated Press · The Verge]
- Federal prosecutors alleged TikTok failed to obtain parental permission before collecting personal data on children under 13 and refused or failed to delete underage accounts when requested by parents.[Associated Press · The Verge]
- The settlement follows major structural changes to TikTok's U.S. operations, which formed a joint venture with investors such as Oracle, Silver Lake, and MGX.[BBC News · Associated Press]
What remains uncertain
- The timeline for the entry of the judicial order vacating the earlier Musical.ly consent decree, which triggers the final $100 million payment, was not detailed.[BBC News · Associated Press · The Verge]