TikTok and ByteDance have agreed to a $400 million settlement with the US Department of Justice over allegations that the short-video platform violated federal children’s privacy requirements.
The Justice Department filed a lawsuit against TikTok and ByteDance in 2024, accusing the companies of failing to adequately protect children’s privacy and unlawfully collecting personal information from young users.
The case centered on a US law requiring online services directed at children to obtain verifiable parental consent before collecting personal information from users under the age of 13.
Associate Attorney General Stanley Woodward said protecting children online remains a priority for the Justice Department and stressed that companies handling children’s personal information are expected to comply with federal law.
TikTok did not immediately comment on the settlement.
Settlement includes immediate $300 million payment
Under the agreement, TikTok will pay $300 million immediately, while another $100 million will be paid after a court enters an order vacating an earlier consent decree involving the Federal Trade Commission.
That earlier case dates back to 2019, when TikTok’s predecessor, Musical.ly, faced action from the FTC over its treatment of children’s data.
At the time, the FTC said Musical.ly knew that young children were using the platform but had failed to obtain parental consent before collecting information such as users’ names, email addresses and other personal details.
Musical.ly agreed to pay a $5.7 million fine, which was the largest civil penalty of its kind at the time under the Children’s Online Privacy Protection Act, commonly known as COPPA.
TikTok says it has strengthened age protections
The US government noted that TikTok has undergone significant changes since the latest complaint was filed. These changes have included adjustments to the company’s ownership structure, management, compliance operations and privacy practices.
The settlement is intended to provide stronger protections for children without requiring the government and the company to go through lengthy litigation.
In a court filing, TikTok’s US joint venture said users are required to provide their date of birth when signing up for the service.
TikToker, Father and Partner Charged in Alleged Murder-for-Hire Plot Against Boy Band Singer
The company also said it has developed more advanced age-moderation systems designed to identify children under 13 who may have provided false information about their age.
According to the filing, TikTok has hundreds of employees trained in detecting underage users. The company said these efforts result in tens of thousands of accounts belonging to underage users being removed.
🚨Today’s settlement delivers RESULTS for our Nation’s parents and their children, ensuring privacy and protection online. This settlement ends years-long litigation, showing this @TheJusticeDept favors WINS today over persistent and unending litigation that offers, at best, only… https://t.co/qVeO0PKvOU
— Stanley E. Woodward, Jr. (@ASGWoodward) August 21, 2026
Broader changes to TikTok’s US operations
The settlement comes as TikTok continues to face significant regulatory and political scrutiny in the United States.
In January, ByteDance agreed to establish a majority American-owned joint venture intended to address US concerns over data security and help avoid a potential ban on the platform.
TikTok is used by more than 200 million Americans, making the platform a major part of the country’s social media landscape.
The latest settlement does not simply concern the amount of money TikTok will pay. It also reflects increasing pressure on major online platforms to strengthen systems designed to protect children and control the collection of their personal data.
For TikTok, the agreement provides a path to resolve the Justice Department’s allegations while highlighting the changes the company says it has made to its privacy and age-verification systems. At the same time, the case underscores the growing legal and regulatory expectations facing technology companies that operate services used by children.
