Photo: IANS
TikTok has agreed to pay $400 million to settle a 2024 lawsuit filed by the U.S. Department of Justice, which accused the company of violating federal laws protecting children’s privacy.
Under the settlement, TikTok will pay $300 million immediately and an additional $100 million once a court order vacates an earlier consent decree involving its predecessor, Musical.ly.
U.S. Associate Attorney General Stanley E. Woodward Jr. described the agreement as a significant win for children and parents, saying it would hold companies accountable for protecting children’s personal information and ensure that families receive the safeguards they expect, Associated Press reported.
The settlement follows major changes at TikTok, including a restructuring of its U.S. operations. In January, the company entered into agreements with investors including Oracle, Silver Lake and MGX to establish a new TikTok U.S. joint venture.
The 2024 lawsuit alleged that TikTok and its China-based parent company, ByteDance, violated federal rules requiring apps and websites aimed at children to obtain parental consent before collecting personal information from users under 13.
The Justice Department also accused the companies of failing to comply with parents’ requests to delete their children’s accounts and of retaining accounts they knew belonged to children below the age limit.
The agreement comes amid increasing legal scrutiny of social media companies over children’s safety and privacy. Meta Platforms, which owns Instagram, is also facing a federal trial in California over allegations that it violated the Children’s Online Privacy Protection Act and several state laws.