TikTok’s Parent Company ByteDance Agrees to Pay $400 Million to Settle Lawsuit with the US Department of Justice over Child Privacy Violations.
TikTok’s parent company ByteDance has agreed to pay $400 million to settle a lawsuit brought by the US Department of Justice during the Biden administration. The lawsuit accused the popular social media app of violating online privacy laws by collecting children’s data.
The US Department of Justice, representing the Federal Trade Commission, filed a lawsuit against TikTok in 2024, alleging that the company allowed children under the age of 13 to create accounts without parental consent and made it difficult for parents to delete these accounts.
TikTok has not yet commented on the settlement.
Under the settlement agreement, TikTok will first pay $300 million and then pay the remaining $100 million once the court orders the withdrawal of the consent decree against TikTok’s predecessor Musical.ly. The US Department of Justice stated that this settlement amount is one of the largest in cases involving the Children’s Online Privacy Protection Act (COPPA).
Deputy Attorney General Stanley Woodward said in a statement that this settlement is a significant victory for American children and parents. In addition to ensuring substantial compensation, it also strengthens the protection that parents expect for their children.
He added that the Department of Justice’s top priority is to ensure the online safety of children and ensure that companies responsible for safeguarding children’s personal information fulfill their legal obligations.
The lawsuit filed by the Department of Justice in 2024 coincided with significant changes in ownership and privacy policy protection at TikTok. The statement noted that TikTok has taken steps to enhance protection for young users, including improving age-related control measures and enhancing parental supervision.
The control of TikTok’s US operations was transferred in January 2026, with ByteDance transferring control to a consortium of US companies led by Oracle and private equity firm Silver Lake Partners.
A written opinion issued by the Department of Justice in July 2026 indicated that the current version of TikTok operates independently of ByteDance and is now controlled by US investors. Under the leadership of its new owners, the app has modified the content recommendation algorithm and network security procedures originally developed by ByteDance.