DOJ, TikTok settle for $400 million in children’s privacy suit
The Justice Department and TikTok, along with parent company ByteDance, have reached a $400 million settlement over allegations that the company violated children’s online privacy laws, according to an announcement first shared with Axios.
The Biden administration’s DOJ filed the lawsuit in 2024. TikTok will resolve the allegations by paying $400 million without further litigation or admitting wrongdoing.
Since the suit was filed, TikTok has made significant changes to its ownership, management, compliance functions and privacy practices, the DOJ said. The settlement is one of the largest recoveries ever obtained under the privacy law.
“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley Woodward said, adding that it secures a substantial recovery while reinforcing protections for families.
The DOJ said changes made during settlement negotiations include stronger safeguards for youths, improved age-related controls and measures giving parents greater oversight.
The 2024 lawsuit, filed under former Attorney General Merrick Garland with the Federal Trade Commission, accused TikTok of violating a 2019 consent order by knowingly allowing children to create regular accounts, interact with adults and others, and unlawfully collecting and retaining children’s email addresses and other personal information.
TikTok was saved by the Trump administration multiple times after a divest-or-ban law passed and was upheld by the Supreme Court. After delayed enforcement, a U.S. joint venture allowed the app to continue operating in the U.S. without a ban.
The settlement marks another win for TikTok under Trump’s second administration. While costly, it avoids continued litigation with the DOJ.
