TikTok agrees to pay $400 million to settle US children's privacy lawsuit

TikTok has agreed to pay $400 million after reaching a settlement with the US Justice Department (DOJ) over a lawsuit alleging the app failed to protect children's online privacy.

"Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok’s predecessor, Musical.ly," the DOJ said in a statement.

The department and the Federal Trade Commission sued TikTok in 2024, alleging that the app had collected children's personal data without parental permission.

The lawsuit said that even accounts created in a "Kids Mode" designed for users under 13 had collected email addresses and other personal information.

The case dates back to 2019, when the US filed a Children's Online Privacy Protection Act (COPPA) lawsuit against Musical.ly, which TikTok's Chinese parent company ByteDance bought in 2017 and then merged into TikTok. The COPPA rule requires websites to obtain verifiable parental consent before collecting any personal information from children younger than 13.

“This settlement is a major victory for American children and parents,” associate Attorney General Stanley Woodward Jr. said. “This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

The DOJ noted in its statement that TikTok had "undergone significant changes to its ownership, management, compliance functions, and privacy practices" since the 2024 suit was filed.

"The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight," it said, adding that this had "strengthened protections for millions of American families."

Euronews has reached out to TikTok for comment.