TikTok, a global short-form video platform owned by ByteDance, has agreed to pay a $400 million settlement to the U.S. government to resolve litigation concerning compliance with the Children’s Online Privacy Protection Act and its implementing regulations (COPPA).
The settlement, announced by the U.S. Department of Justice on Friday, represents one of the largest recoveries ever obtained in a COPPA case.
“Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok’s predecessor, Musical.ly,” the U.S. Department of Justice said.
Associate Attorney General Stanley E. Woodward Jr. said, “This settlement is a major victory for American children and parents,” adding that “the Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations.”
Brett A. Shumate, Assistant Attorney General of the Justice Department’s Civil Division, said, “This settlement reflects substantial progress, secures a significant monetary recovery, and brings this matter to a successful conclusion.”
He added, “The most important result is that children and parents are better protected today than they were when this case began.”
The U.S. Justice Department filed its complaint in 2024 at the U.S. District Court for the Central District of California.
According to the Justice Department, since the complaint was filed against the social media company, TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices.