TikTok will pay $400 million to resolve allegations that it breached US federal protections for children’s privacy, the Justice Department said, in one of the largest penalties yet aimed at the short-video platform.
The case comes as regulators worldwide intensify scrutiny of social media companies accused of mishandling children’s data, privacy and online safety.
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ByteDance, the Chinese company that owns TikTok, is also covered by the agreement. Earlier this year, it sold a majority stake in its US operations to avoid a ban pursued by the Trump administration. US media reports have said ByteDance retains a 19.9% interest in TikTok US.
Under the settlement, TikTok must pay $300 million immediately, followed by another $100 million once a court enters an order vacating an earlier consent decree involving Musical.ly, the department said.
The Children’s Online Privacy Protection Act, known as COPPA, prohibits websites from collecting personal information from children under 13 without verifiable parental consent.
The Justice Department and Federal Trade Commission filed a joint lawsuit against TikTok in 2024, accusing the company of putting millions of children at risk by gathering their personal information without informing or obtaining permission from their parents.
COPPA bars websites from gathering the personal information of children younger than 13 without parental permission (Stock image)
Federal officials alleged that TikTok permitted children to use the service while collecting and processing information about them without adequate parental knowledge.
The lawsuit also claimed that accounts operating in “Kids Mode,” which was designed for users under 13, still collected email addresses and other personal details.
The dispute follows a 2019 COPPA case brought by the US against Musical.ly, an app ByteDance acquired in 2017 before folding it into TikTok.
TikTok did not immediately respond to a request for comment.
Global crackdown
The settlement arrives as TikTok faces mounting regulatory pressure across several major markets.
An ABC News report in May said the Trump administration had been considering directing the money toward continuing “beautification” initiatives, including work to resurface the Lincoln Memorial Reflecting Pool, renovate the White House ballroom and construct an arch. The intended use of the settlement funds was not immediately clear.
Brussels opened a formal investigation into TikTok in 2024 under the Digital Services Act, a sweeping content law that has become one of the European Union’s principal tools for challenging Big Tech.
In July, the EU accused TikTok of failing to adequately protect children through account settings that could leave them vulnerable to cyberbullying and predatory conduct, exposing the company to a potentially significant fine.
European officials said accounts belonging to minors should be visible only to people those users have approved. TikTok is available to children aged 13 and older.
“A high level of protection should not be an opt-in; it should be the default,” EU technology chief Henna Virkkunen said in a statement at the time.
The Trump administration was reportedly considering using the funds for ongoing ‘beautification’ projects
The DSA requires children’s accounts to use the strongest privacy, safety and security settings by default.
“TikTok’s account settings fail to meet this standard, as they expose minors’ accounts and content too widely,” the EU said in its preliminary assessment.
Ofcom, the UK communications regulator, opened its own investigation into TikTok in July.
The inquiry will examine whether the platform is meeting its obligations under British law to shield children from harmful material.
“This investigation will seek to establish whether there are reasonable grounds to believe that TikTok has failed, or is failing, to comply with its legal obligations,” Ofcom said.
The regulator said it would pay particular attention to TikTok’s approach to verifying users’ ages.
