TikTok Settles Child Privacy Lawsuit for $400 Million

TikTok has reached a substantial $400 million settlement with the U.S. government to resolve allegations of violating children's privacy laws. This agreement, one of the largest of its kind, follows a lawsuit initiated by the Department of Justice in 2024 under President Biden.

The lawsuit claimed that TikTok and its parent company, ByteDance, collected extensive data from millions of users under 13, contravening the Children’s Online Privacy Protection Act (COPPA). Assistant Attorney General Brett Shumate stated, "Children and parents are better protected today than they were when this case began."

Under the settlement terms, TikTok will pay $300 million immediately, with an additional $100 million due once a 2019 consent decree is lifted. Previous COPPA violations have seen companies like YouTube and Epic Games incur hefty fines, with Meta currently facing severe penalties from multiple states.

While the lawsuit predates TikTok's operational split from China, it specifically pertains to the company’s practices prior to these changes. Notably, TikTok has since implemented significant alterations in its privacy policies and platform controls for younger users.

Source: www.bbc.co.uk