TikTok to pay $400 million to settle US child privacy case

The U.S. Justice Department and TikTok, along with its parent company ByteDance, have reached a $400 million settlement to resolve allegations that the short-video platform violated federal laws protecting children’s online privacy, according to an announcement first shared with Axios.

The case was originally filed by the Biden administration’s Justice Department in 2024. Under the settlement, TikTok will pay $400 million to resolve the allegations without further litigation or admitting wrongdoing.

The Justice Department said TikTok has undergone “significant changes to its ownership, management, compliance functions, and privacy practices” since the lawsuit was filed. It described the settlement as one of the largest recoveries ever obtained under the relevant child-privacy law.

“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley Woodward said.

“The Department's priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

The Justice Department said TikTok’s changes since 2024 have “materially advanced the public interests underlying” its original lawsuit and “strengthened protections for millions of American families.”

Measures negotiated as part of the settlement include stronger safeguards for young users, enhanced age-related controls and mechanisms allowing parents to exercise greater oversight.

The Justice Department filed the lawsuit in 2024 under then-Attorney General Merrick Garland, together with the Federal Trade Commission. The government accused TikTok and ByteDance of violating a 2019 consent order in several ways, including “Knowingly permitting children to create regular TikTok accounts and to create, view, and share short-form videos and messages with adults and others on the regular TikTok platform.”

The government also accused the company of unlawfully collecting and retaining children’s email addresses and other personal information.

The settlement comes after TikTok repeatedly avoided being forced out of the U.S. market under legislation requiring ByteDance to divest the platform or face a ban. The divest-or-ban law was upheld by the Supreme Court, but enforcement was subsequently delayed by the Trump administration.

A U.S. joint venture eventually enabled TikTok to continue operating in the country without being banned.

The $400 million settlement represents a significant financial penalty for TikTok but brings the child-privacy case to an end without further litigation, providing the company with greater legal certainty as it continues operating in the United States under the Trump administration.

By Tamilla Hasanova