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Justice Department reaches $400 million settlement with TikTok over child privacy case
The deal resolves allegations that TikTok collected data from children under 13 without parental consent and includes stronger safeguards for young users.
The Justice Department announced a $400 million settlement with TikTok and China-based ByteDance on Friday to resolve allegations the app violated federal laws protecting children's online privacy.
Filed in 2024, the Justice Department lawsuit alleged the platform permitted children under 13 to create accounts while collecting personal information without parental consent in violation of COPPA.
Under the agreement, TikTok will pay $300 million immediately, with $100 million due upon vacating a prior consent decree against predecessor Musical; the firm committed to implementing enhanced age-related controls and parental oversight.
Associate Attorney General Stanley called the settlement a "major victory for American children and parents," while the company has since overhauled its ownership, management, and privacy practices.
Recently, lawmakers questioned TikTok CEO Shou Chew regarding a report that the app disabled algorithmic safeguards for roughly 10% of American users, even as it operates under a new American-owned joint venture.