TikTok has agreed to pay $400 million to resolve a U.S. Department of Justice lawsuit alleging the social media platform illegally collected personal information from children under 13. The settlement is one of the largest recoveries obtained under the federal Children's Online Privacy Protection Act.
Here's what to know
Under the deal, TikTok would pay $300 million, plus another $100 million if a court vacates the 2019 Federal Trade Commission consent decree involving its predecessor, Musical.ly, according to Top Class Actions. Both sides filed a joint notice seeking permanent dismissal of the DOJ lawsuit with prejudice.
At the center of the August 2024 lawsuit against TikTok, ByteDance Ltd., and related affiliates was the federal Children's Online Privacy Protection Act, or COPPA, which limits how companies may collect and use data from children under 13 without consent and clear notice to parents. By COPPA standards, this recovery ranks among the largest.
Officials alleged that TikTok let children under 13 create regular accounts and collected their personal information, while using inadequate systems to detect and remove those accounts. They also said the company made it hard for parents seeking to have accounts deleted.
More background
The government's allegations included claims that millions of users under 13 were able to join the app and interact with adults.
The case followed a 2019 enforcement matter. In 2019, the Federal Trade Commission entered into a consent decree with Musical.ly that required $5.7 million in payments and corrective measures aimed at protecting younger users.
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What's being done?
In total, the settlement requires a $400 million payment to resolve the dispute.
After the 2019 FTC order, TikTok changed its ownership and management, revised its compliance functions and privacy practices, and added measures meant to improve age controls and parental oversight.
Meanwhile, in another instance of privacy violations, TikTok is also facing a class action lawsuit under the Telephone Consumer Protection Act, which accused the company of sending unsolicited text messages to consumers.
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