TikTok To Pay US$400 Million To Settle US Children’s Privacy Lawsuit: US Justice Department

ISTANBUL, Aug 22 (Bernama-Anadolu) -- TikTok and parent company ByteDance have agreed to pay US$400 million to settle with the United States (US) Justice Department over allegations the platform violated a children’s online privacy law, Anadolu Ajansi reported.

TikTok will pay US$300 million immediately and another US$100 million after a court dismisses an earlier consent decree involving its predecessor, Musical.ly, the Justice Department said.

The department sued TikTok and ByteDance in 2024, alleging the platform violated the Children’s Online Privacy Protection Act by allowing children under 13 to create accounts and failing to delete their accounts and data when parents requested it.

“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley Woodward Jr. said.

“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.

“This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve,” he added.

The Justice Department said TikTok has “undergone significant changes to its ownership, management, compliance functions, and privacy practices” since the lawsuit was filed.

TikTok is now controlled by TikTok USDS Joint Venture, which is majority-owned by American investors, following a 2024 law requiring ByteDance to divest from the app or face a US ban.

The law was driven by national security and privacy concerns over ByteDance’s ties to China.

-- BERNAMA-ANADOLU