TikTok agrees to pay $400m to settle US lawsuit over children's privacy
Under the settlement announced on August 21, TikTok will pay $300 million immediately and an additional $100 million once a court enters an order vacating a previous consent decree involving TikTok’s predecessor, Musical.ly.
The settlement resolves litigation brought under the Children’s Online Privacy Protection Act (COPPA), which sets requirements for companies that collect personal information from children.
The Justice Department said the settlement was one of the largest recoveries ever obtained in a COPPA case. The lawsuit was filed in 2024 in the US District Court for the Central District of California and was handled by the department’s Civil Division following a referral from the Federal Trade Commission.
Since the lawsuit was filed, TikTok has made significant changes to its ownership, management, compliance functions and privacy practices, according to the department. The company has also introduced measures aimed at strengthening protections for younger users, improving age-related controls and increasing parental oversight.
Associate Attorney General Stanley E. Woodward Jr. described the settlement as a major victory for children and parents, saying companies handling children’s personal information must meet their legal obligations.
The Justice Department said the agreement would provide a substantial financial recovery while recognizing the compliance measures TikTok has already implemented, avoiding the delay and uncertainty of prolonged litigation.
Earlier, Qazinform News Agency reported that The Walt Disney Company and TikTok agreed to place fan-made short videos built around Disney films and series inside the Disney+ app.
