TikTok Settles $400-Million Case: Protecting Children's Online Privacy

TikTok and ByteDance have settled a $400-million lawsuit with the U.S. Justice Department over children's online privacy violations. Accused of collecting data without parental consent from users under 13, TikTok agreed to pay and enhance privacy practices. Changes in company structure aim to secure U.S. data.

TikTok and its parent company ByteDance have agreed to pay a $400-million settlement in response to allegations of violating children's online privacy. The U.S. Justice Department accused the companies of illegally collecting data from users under 13 without parental consent.

The settlement involves an immediate payment of $300 million, with an additional $100 million contingent upon the vacation of a Federal Trade Commission decree from 2019. This decree related to privacy violations when TikTok was known as Musical.ly.

To prevent a U.S. ban, ByteDance is establishing a majority American-owned joint venture to secure U.S. data. TikTok asserts it has improved age-moderation systems and privacy practices, and the department emphasizes the settlement ensures enhanced protections without lengthy litigation.