TikTok agrees $400m settlement in US child privacy case

TikTok and its Chinese parent company ByteDance have agreed to pay US$400 million, or approximately THB13 billion, to settle US government allegations that the short-video platform violated federal protections for children’s online privacy.

The US Department of Justice sued TikTok, ByteDance and affiliated companies in 2024, accusing them of collecting personal information from children under 13 without obtaining parental consent.

The claims concerned alleged violations of the Children’s Online Privacy Protection Act and its implementing regulations, commonly known as COPPA.

The settlement resolves the litigation without a determination of liability. The Justice Department stressed that the claims were allegations only, while a court filing showed that the case was being dismissed with prejudice, preventing the same claims from being brought again.

TikTok to pay $300 million immediately

Under the agreement, TikTok will pay US$300 million, or about THB9.75 billion, immediately.

A further US$100 million, approximately THB3.25 billion, will become payable after a court issues an order vacating a previous consent decree against Musical.ly, TikTok’s predecessor.

That consent decree followed a 2019 Federal Trade Commission case. The FTC alleged that Musical.ly knew young children were using its platform but had failed to obtain parental permission before collecting their names, email addresses and other personal information.

Musical.ly paid a US$5.7-million penalty to settle the earlier allegations.

The Justice Department described the latest US$400-million resolution as one of the largest recoveries obtained in a COPPA case.

US authorities prioritise children’s protection

Associate Attorney General Stanley E. Woodward Jr said the settlement represented a significant result for American children and their parents.

“The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations,” Woodward said.

He added that the agreement secured a substantial financial recovery while reinforcing the protections that families expected from companies handling children’s information.

TikTok did not immediately comment on the settlement, according to Reuters.

Settlement follows TikTok’s US restructuring

The agreement comes as TikTok restructures its US operations following years of uncertainty over the platform’s future in the country.

ByteDance agreed to establish a majority American-owned joint venture to oversee US user data and avert a potential ban on the platform, which is used by more than 200 million Americans.

The Justice Department said TikTok had made significant changes to its ownership structure, management, compliance operations and privacy practices since the lawsuit was filed in 2024.

The department also acknowledged measures intended to strengthen safeguards for younger users, improve age-related controls and give parents greater oversight.

TikTok strengthens age-detection measures

TikTok’s US joint venture said in a court filing that every user must enter a date of birth before accessing the platform.

The company said it had also developed age-moderation systems designed to detect users under 13 who provided inaccurate information about their age.

Hundreds of employees have been trained to review potentially underage users, according to the filing. TikTok said the system had resulted in the removal of tens of thousands of accounts belonging to children below the platform’s minimum age.

The Justice Department said the settlement would provide stronger privacy protections for American families without the delays and uncertainty associated with prolonged litigation.