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TikTok reaches $400M settlement With DOJ over children's privacy claims
KOMO • • business
Key Points:
- TikTok has agreed to pay $400 million to settle a DOJ lawsuit accusing it and parent company ByteDance of violating the Children's Online Privacy Protection Act (COPPA) by improperly collecting data from children under 13.
- The settlement includes an immediate payment of $300 million and an additional $100 million contingent on vacating a prior consent decree related to Musical.ly, TikTok's predecessor.
- The 2024 lawsuit alleged TikTok failed to obtain parental consent for data collection, did not delete children's accounts upon request, and retained accounts of users under 13.
- TikTok has since enhanced privacy protections, improved age controls, and expanded parental oversight to better safeguard younger users.
- The company also restructured its U.S. ownership, forming a joint venture with Oracle, Silver Lake, and MGX to address regulatory concerns.
