Business News | TikTok, ByteDance Settle US Children's Privacy Case for USD 400 Million
Get latest articles and stories on Business at LatestLY. The US Department of Justice has secured a $400 million settlement with TikTok, ByteDance and affiliated entities to resolve litigation over alleged violations of children's online privacy laws, in one of the largest recoveries obtained in a case under the Children's Online Privacy Protection Act (COPPA).
Washington [US], August 22 (ANI): The US Department of Justice has secured a USD 400 million settlement with TikTok, ByteDance and affiliated entities to resolve litigation over alleged violations of children's online privacy laws, in one of the largest recoveries obtained in a case under the Children's Online Privacy Protection Act (COPPA).
Under the settlement, TikTok will pay USD 300 million immediately and an additional USD 100 million after an order is entered vacating a prior consent decree against TikTok's predecessor, Musical.ly, the Justice Department said in a release.
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The settlement resolves litigation concerning compliance with COPPA and its implementing regulations. The Justice Department had filed its complaint in 2024, alleging violations involving children's personal information.
"This settlement is a major victory for American children and parents," Associate Attorney General Stanley E. Woodward Jr said, adding that the resolution secures a substantial recovery while reinforcing protections for families.
The Justice Department said TikTok has undergone significant changes in its ownership, management, compliance functions and privacy practices since the lawsuit was filed.
The company has implemented measures aimed at strengthening safeguards for younger users, improving age-related controls and enhancing parental oversight, the department said. These changes have advanced the public interests underlying the litigation and strengthened protections for millions of American families, it added.
Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division said companies collecting children's personal information must comply with the law.
"This resolution secures a significant monetary recovery and reflects the Department's commitment to ensuring children receive the full protections that Congress mandated," Shumate said.
The department said the settlement was intended to secure practical results while avoiding the delay and uncertainty of prolonged litigation. It said the resolution recognises the compliance improvements already implemented by TikTok while securing the monetary recovery.
The case was filed in the US District Court for the Central District of California and was handled by the Civil Division's Enforcement and Affirmative Litigation Branch on referral from the Federal Trade Commission.
The Justice Department clarified that the claims resolved through the settlement are allegations only and that there has been no determination of liability.
The settlement follows the department's 2024 lawsuit against TikTok and ByteDance over alleged failures to protect children's privacy. The earlier complaint had alleged that TikTok allowed children to create accounts and collected and retained their personal information without parental consent. (ANI)
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