The DOJ described the settlement as a ‘major victory for American children and parents’
The US justice department has agreed to a US$400 million settlement in its privacy suit against social media platform TikTok, concluding a legal bout that began in 2024.
Per the DOJ, TikTok would make an initial payment of US$300 million with immediate effect. The remaining US$100 million would be paid once an order vacates a previous consent decree against Musical.ly, TikTok’s predecessor company, The Associated Press reported.
US associate attorney general Stanley E. Woodward Jr. described the settlement as “a major victory for American children and parents” in a statement published by AP News.
“The department’s 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,” Woodward said in the statement.
According to AP News, TikTok representatives did not immediately respond to a request for comment on Friday August 21.
The justice department had accused TikTok and ByteDance, its parent company, of breaching a federal law requiring child-oriented apps and websites to secure parental consent before collecting the personal information of users under 13 years of age. The suit claimed that TikTok and ByteDance ignored parents’ requests to remove their children’s accounts; moreover, they opted to maintain accounts created by under-13 users despite knowing the users’ age.
TikTok has since modified the ownership structure of its US arm and birthed a new US joint venture through agreements with investors, such as Oracle, Silver Lake, and Emirati investment firm MGX. In 2024, the European Commission also initiated proceedings to determine whether TikTok violated Digital Services Act regulations.
Earlier this year, TikTok opted to settle with the plaintiff in a landmark suit that accused social media giants of driving young users to addiction. The suit, filed by a young woman, named TikTok, Snap, Meta Platforms, and YouTube as defendants.
Last month, a jury in California awarded the victory to the plaintiff in that case. The woman was granted US$3 million in damages with a recommendation for another US$3 million in punitive damages after a ruling that the companies acted with malice, oppression, or fraud.
Both Meta and YouTube filed notices of appeal.
