TikTok and ByteDance have agreed to pay $400 million to resolve US government allegations that the platform collected personal information from children without required parental consent.

TikTok has agreed to pay $400 million to settle a US government lawsuit alleging that the social-media platform violated federal children's privacy laws by collecting personal information from users under 13 without obtaining parental consent.

The settlement also involves ByteDance, TikTok's Chinese parent company. Under the agreement, TikTok will pay $300 million immediately, while another $100 million is linked to the court vacating an earlier consent decree involving Musical.ly, the app ByteDance acquired before it became TikTok.

The US Justice Department described the agreement as one of the largest recoveries obtained in a case involving the Children's Online Privacy Protection Act (COPPA).

What TikTok Was Accused Of

US authorities alleged that TikTok allowed children to use its platform while collecting and using their personal information without properly notifying or obtaining permission from their parents.

The case focused on children below the age of 13, who receive additional protection under US federal privacy law.

According to the allegations, TikTok's practices potentially exposed millions of children to the collection of personal information without the required parental involvement.

The government argued that the company failed to meet its obligations under COPPA.

Kids Mode Also Under Scrutiny

The US case also raised concerns about TikTok's “Kids Mode” experience.

Authorities alleged that accounts created for users under 13 could still involve the collection of information such as email addresses and other personal data.

COPPA generally requires covered online services to obtain verifiable parental consent before collecting personal information from children under 13.

The allegations therefore focused not only on ordinary TikTok accounts but also on mechanisms intended specifically for younger users.

$300 Million Paid First

The settlement divides the $400 million payment into two parts.

TikTok will pay $300 million immediately under the agreement.

The remaining $100 million is conditional on a court order vacating an earlier consent decree connected with Musical.ly, the short-video application that ByteDance acquired in 2017.

Musical.ly was subsequently merged into TikTok, bringing the earlier privacy concerns into the broader legal history surrounding the platform.

The settlement resolves the government's case without the allegations being treated as a criminal conviction.

COPPA At Centre

The legal dispute centres on the Children's Online Privacy Protection Act, a US federal law designed to protect children under 13 when they use online services.

COPPA places specific requirements on companies that collect personal information from children.

Among other requirements, companies must generally provide notice to parents and obtain verifiable parental consent before collecting covered personal information from children.

The Justice Department and Federal Trade Commission filed their joint lawsuit against TikTok in 2024, building on an earlier government case involving Musical.ly.

The latest settlement brings the long-running dispute to a financial resolution.

ByteDance Still Involved

The settlement comes amid major political and regulatory scrutiny of ByteDance's ownership of TikTok in the United States.

The company sold a majority stake in its US business earlier this year as part of an arrangement aimed at avoiding a ban sought by the Trump administration.

US media reports cited in the case said ByteDance retained a 19.9 per cent stake in TikTok US.

The ownership issue has been separate from the children's privacy case but has contributed to the broader scrutiny surrounding TikTok's US operations.

How Will Money Be Used?

There are also questions over what will happen to the settlement funds.

An ABC News report in May said the Trump administration had considered using some settlement money for government “beautification” projects, including work involving the Lincoln Memorial Reflecting Pool, renovations to the White House ballroom and a proposed arch.

It was not immediately clear how the money from this settlement would ultimately be allocated.

The issue could attract further attention because the payment is being made as part of a federal government enforcement settlement.

EU Also Targets TikTok

The US settlement comes as TikTok faces increasing scrutiny in other jurisdictions over children's safety and privacy.

The European Union launched a Digital Services Act investigation into TikTok in 2024.

In July, EU authorities accused the platform of failing to adequately protect children through account settings that could expose younger users to risks including cyberbullying and predatory behaviour.

The EU has also argued that accounts belonging to minors should have stronger privacy protections, including limits on who can view or interact with them.

TikTok could face significant regulatory consequences in Europe if the allegations are ultimately established.

TikTok US Privacy Case: Key Facts

What Happens Next?

The settlement closes a major US legal dispute over TikTok's handling of children's personal information, but it does not end regulatory scrutiny of the platform.

TikTok continues to face questions about child safety, privacy, data protection and platform governance in multiple jurisdictions.

For parents and regulators, the central issue remains whether safeguards designed to keep children away from inappropriate data collection and online risks are actually effective in practice.

The case also highlights the increasing financial and regulatory consequences facing large technology platforms when governments conclude that child-protection rules have not been adequately followed.

TikTok has agreed to pay $400 million to settle US government allegations that it collected children's personal information without proper parental consent. The settlement involves ByteDance and follows a 2024 lawsuit under COPPA. The agreement comes as TikTok faces continuing scrutiny over child safety and privacy in both the US and European Union.