TikTok will pay $400 million to the United States Department of Justice to end a lawsuit that accuses the platform of collecting personal data from children under 13, a violation of the Children’s Online Privacy Protection Act (COPPA).
The settlement is one of the biggest ever for a child‑privacy claim. TikTok agrees to pay $300 million immediately, with a further $100 million payable once a 2019 FTC consent decree is vacated, covering the U.S. arm of the app.
ByteDance, the parent company, still retains a 19 % stake in TikTok’s U.S. operations, which are now majority‑owned by a consortium of investors. This ownership split followed divestiture proceedings that began last year amid calls for a ban or separation of the app from Chinese control.
The DOJ’s complaint notes that TikTok failed to verify users’ ages or obtain parental consent for those under 13, a core COPPA requirement. Similar penalties were imposed on YouTube ($170 million), Epic Games ($275 million), and are now pending for Meta across 29 U.S. states.
Assistant Attorney General Brett Shumate said the settlement reflects stronger safeguards for children and parents. In response, TikTok has revamped its privacy measures and age‑verification processes.
The case underscores widespread scrutiny of social‑media firms on how they handle children’s data and hints at further regulatory challenges for companies that do not meet U.S. privacy standards.
