The Justice Department reached a $400 million settlement with TikTok and its Chinese parent company ByteDance, ending a lawsuit accusing the social media giant of illegally collecting childrenâs personal information without it having to admit wrongdoing or facing further litigation.
The deal, first reported by Axios, resolves the case first brought by the Biden administration in 2024 and becomes one of the largest recoveries secured under the Childrenâs Online Privacy Protection Act.
The DOJ and Federal Trade Commission sued TikTok under former Attorney General Merrick Garland, alleging the company had violated a 2019 consent order governing its treatment of childrenâs data by âknowingly permitting children to create regular TikTok accountsâ as well as to âcreate, view, and share short-form videos and messages with adultsâ on the platform.
Officials also alleged the company unlawfully collected and retained childrenâs email addresses and other personal information.
âTikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices,â the DOJ said in announcing the agreement.
Reacting to the deal, Associate Attorney General Stanley Woodward called the settlement a âmajor victory for American children and parents.â
He added: âThe Departmentâs priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.â
The Justice Department said changes made by TikTok since the lawsuit was filed have âmaterially advanced the public interests underlyingâ the original case and âstrengthened protections for millions of American families.â
Those measures include stronger safeguards for younger users, improved age controls and additional tools giving parents oversight of their childrenâs activity.
