Annabelle Gordon - CNP / MEGAAnnabelle Gordon - CNP / MEGA

TikTok’s major child privacy lawsuit has reached its end, at an expensive cost to the social media platform.

It agreed to settle the suit with the U.S. Justice Department for $400 million, payable in two installments of $300 million and $100 million.

The suit began in 2024 and has now been described by the government agency as “one of the largest recoveries ever obtained in a COPPA case.”

TikTok Settles Child Privacy Case After Two-Year Legal Battle

After nearly two years of legal feuding, TikTok and the U.S. Justice Department have agreed to settle the case out of court for $400 million.

The federal agency’s lawsuit accused TikTok of allowing children under 13 to create accounts without their parents’ permission. This allegedly allowed children to share personal information on the platform without parental consent and interact with adult users without adequate protections to keep them safe from potential manipulation.

The Justice Department claimed that this violated the Children’s Online Privacy Protection Act (COPPA), which took effect in 2001.

Despite the settlement, TikTok did not admit legal responsibility for any minor who had access to its platform. The DOJ also said the claims resolved in the settlement were allegations only, with no determination of liability.

TikTok Will Pay $400 Million In Two Installments

ZUMAPRESS.com / MEGA

Concerning the settlement, $300 million will be paid now, with the remaining $100 million to be paid after the government vacates a 2019 order against TikTok’s predecessor, Musical.ly, from its previous dispute with the Federal Trade Commission.

Meanwhile, although the TikTok lawsuit predates last year’s separation of TikTok’s U.S. business and operations from its Chinese parent, the settlement only covers TikTok’s U.S. operations.

However, it remains unclear who will pay the settlement. The U.S. business is now 81% owned by a consortium of American investors, while ByteDance retains a 19% stake following the 2025 restructuring.

• TikTok accused the U.S. government of “circumventing the First Amendment” amid the legal feud.
• Former President Joe Biden signed a national security bill mandating that TikTok’s owner, ByteDance, sell the platform.
• Users bid farewell to TikTok amid uncertainty over a possible ban during Biden’s administration.
• TikTok CEO Shou Zi Chew called out misinformation about the app following the passage of the Protecting Americans From Foreign Adversary Controlled Applications Act.

Justice Department Calls TikTok Settlement A Major Victory

Kenny Holston/The New York Times / MEGA

In a statement, the Justice Department described the settlement as a “major victory for American children and parents” and one of the “largest recoveries ever obtained in a COPPA case.”

“The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations,” Associate Attorney General Stanley E. Woodward Jr. said. “This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

Attorney General Brett A. Shumate of the Justice Department’s Civil Division also echoed the same sentiment, saying that “companies that collect children’s personal information must comply with the law.”

“This resolution secures a significant monetary recovery and reflects the Department’s commitment to ensuring children receive the full protections that Congress mandated,” he also noted.

Netizens Say TikTok’s $400 Million Settlement Isn’t Enough

In response to the settlement, netizens criticized the $400 million payment, arguing that it was insufficient for the alleged violations.

“$400 million for collecting kids’ data is just the cost of doing business at this point ig,” one wrote. “That’s not a fine, that’s a subscription. We should have actual consequences for these companies.”

“400 million for kid data is still pocket change,” another user wrote, while a third commented, “$400m is nothing to them.”

Some users praised the move as potentially pivotal in introducing stronger safeguards for children’s privacy on social media apps.

“Hopefully this pushes the entire industry to do a better job protecting children and handling user data responsibly,” one added.

European Commission Flags TikTok Over Minors’ Safety

A month before the settlement, the European Commission preliminarily found TikTok to be in breach of the Digital Services Act (DSA).

“On TikTok, minors can choose to set their account as ‘public.’ This means that any user, including those without a TikTok account, may be able to view minors’ content,” the commission wrote in its preliminary findings sent to the social media company.

“This setting also allows content published by ‘older’ minors (16-17 years old) to be recommended to any other TikTok user through the For You Feed,” it added.

The commission recommended that TikTok adjust its settings for minors, including ensuring that their content is not broadly accessible by default and is not recommended to other users through the For You Feed.

The findings were preliminary and did not represent the final outcome of the European Commission’s investigation.

The TikTok Settles $400 Million Child Privacy Lawsuit first appeared on The Blast