TikTok has reached a settlement to pay a fine of up to $400 million, or about 13 billion baht, to the U.S. Department of Justice to resolve a case involving the unauthorized collection of personal data from children under 13. This stands as one of the largest fines and privacy settlements involving children's data in U.S. history.
TikTok agreed to pay $400 million, approximately 13 billion baht, to the U.S. Department of Justice to settle a lawsuit filed in 2024. The government accused TikTok and its parent company ByteDance of collecting extensive data from millions of users under 13, violating the Children's Online Privacy Protection Act (COPPA), which has been enforced since 2000.
Under the agreement, TikTok and ByteDance will pay $300 million immediately to the U.S. Department of Justice, with an additional $100 million payable when the government withdraws a prior settlement order related to Musical.ly. ByteDance acquired Musical.ly, which was the predecessor to TikTok. In 2019, Musical.ly was fined $5.7 million for COPPA violations and required to obtain parental consent for users under 13.
The U.S. Department of Justice stated that TikTok was accused of failing to effectively verify users' ages and not properly obtaining parental consent. Additionally, TikTok was alleged to have failed to delete children's accounts when requested by parents or when the company was aware the accounts belonged to children under 13.
A U.S. Department of Justice official said this settlement enhances protections for children and parents online, emphasizing that companies entrusted with children's personal data must comply with the law.
However, the Department of Justice did not disclose whether TikTok faces any penalties beyond the fine. It noted that since the lawsuit, TikTok has made significant changes in ownership structure, privacy policies, and controls for underage users.
This settlement comes amid heightened scrutiny of technology and social media companies regarding child safety and privacy. Meta, the parent company of Instagram and Facebook, is also facing U.S. legal proceedings over alleged COPPA violations.
Earlier in 2024, President Joe Biden pushed for a ban on TikTok in the U.S. or for ByteDance to divest its U.S. operations, while former President Donald Trump supported divestment and separation of TikTok's U.S. business, which occurred last year.
Currently, TikTok's U.S. business is 81% owned by a group of investors, with ByteDance retaining a 19% stake. ByteDance remains a private company with a recent estimated valuation of approximately $550 billion.
This U.S. government settlement represents a significant test for TikTok amid increasing global regulatory pressure to tighten controls on the collection and use of children's personal data on online platforms.