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TikTok to pay $400 million over child privacy lawsuit

TikTok and its parent company ByteDance have agreed to pay $400 million to settle a US government lawsuit accusing the platform of violating federal protections for children’s online privacy. The case was brought by the US Department of Justice in 2024 following an investigation by the Federal Trade Commission and focused on alleged violations of the Children’s Online Privacy Protection Act, or COPPA. 

 

Federal authorities alleged that TikTok knowingly allowed millions of children under the age of 13 to create and maintain regular accounts on the platform. These accounts enabled younger users to post videos, interact with other users and communicate with adults, despite TikTok officially restricting standard accounts to users aged 13 and older. 

 

The lawsuit also accused TikTok of collecting, processing and retaining children’s personal information without properly notifying their parents or obtaining the parental consent required under COPPA. Authorities further alleged that the company failed to adequately respond to requests from parents seeking the deletion of their children’s accounts and associated personal data. 

 

The allegations were particularly significant because TikTok had already faced regulatory action over children’s privacy. In 2019, its predecessor, Musical.ly, agreed to pay $5.7 million to settle COPPA violations and committed to preventing children under 13 from improperly creating accounts. The later lawsuit alleged that problems involving underage users and their data nevertheless continued. 

 

Under the new settlement, TikTok will pay $300 million immediately. A further $100 million will become payable when a previous consent decree involving Musical.ly is vacated. The Justice Department describes the $400 million agreement as one of the largest financial recoveries ever obtained in a COPPA case. TikTok and ByteDance are resolving the allegations without admitting liability. 

View the original full article here: https://mashable.com/tech/tiktok-agrees-to-400-million-dollar-settlement-over-child-privacy-lawsuit

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