TikTok, ByteDance and related companies have reached a proposed settlement with the US government over allegations that they violated children’s privacy rules.
The TikTok COPPA settlement carries a potential value of $400 million. The Department of Justice said the agreement resolves a lawsuit filed in 2024.
The case involved claims that TikTok collected and retained personal information from children under 13 without obtaining parental consent.
US alleged repeated child privacy failures
The Children’s Online Privacy Protection Act, known as COPPA, limits how online services collect personal data from children under 13.
The Justice Department alleged that TikTok allowed underage users to create standard accounts outside its restricted Kids Mode. It also claimed the platform collected personal information from those users without parental permission.
According to the complaint, TikTok did not always remove accounts and data when parents requested deletion. The government also alleged that the company lacked adequate processes to identify and remove underage accounts.
The allegations covered conduct dating back to 2019.
Earlier Musical.ly case preceded new lawsuit
TikTok’s predecessor, Musical.ly, reached a $5.7 million settlement with the Federal Trade Commission in 2019.
That case also involved allegations that the platform collected personal information from children without parental consent.
The FTC later referred another investigation to the Justice Department. The government claimed TikTok continued to fall short of COPPA requirements despite the earlier agreement.
TikTok did not admit liability through the newly announced settlement. The Justice Department noted that no court has determined whether TikTok or ByteDance violated the law.
Deal includes immediate and conditional payments
Under the TikTok COPPA settlement, the company will pay $300 million immediately.
TikTok could pay an additional $100 million if a court later vacates an earlier consent decree involving Musical.ly. That would bring the total potential payment to $400 million.
The Justice Department described the agreement as one of the largest financial resolutions in a COPPA-related case.
Officials said the settlement reflects the importance of enforcing privacy protections for children online.
TikTok changed privacy and compliance practices
The Justice Department acknowledged that TikTok has made changes since 2024.
Those changes reportedly include updates to ownership arrangements, data management processes and legal compliance operations. The platform also strengthened privacy retention practices, age-related controls and parental oversight.
The TikTok COPPA settlement closes the current litigation, but it also serves as a reminder that platforms must handle children’s information with particular care.
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