TikTok settles US child privacy lawsuit for $400m

TikTok says it has tightened its age-verification measures

TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to settle US government allegations that the short-form video app failed to properly protect children's privacy.

The US Department of Justice (DoJ) sued TikTok and ByteDance in 2024, accusing the companies of illegally collecting personal information from children and failing to obtain parental consent.

The case centred on US rules requiring online services directed at children to obtain permission from parents before collecting personal information from users under 13.

Under the agreement, TikTok will make an immediate payment of $300 million, with a further $100 million due once a court order vacates a consent decree previously agreed with the Federal Trade Commission (FTC).

That earlier case involved Musical.ly, the predecessor to TikTok.

In 2019, the FTC said Musical.ly knew that young children were using its service but had failed to obtain parental consent before collecting information including names and email addresses.

The company agreed to pay $5.7 million at the time.

"This settlement is a major victory for American children and parents," said associate attorney general Stanley E Woodward Jr.

He added the Justice Department's priority was ensuring children were protected online and that private firms handling their personal information complied with the law.

Assistant attorney general Brett A Shumate said companies collecting children's data "must comply with the law".

The settlement, he added, demonstrated the department's commitment to ensuring children received protections required by Congress.

TikTok says it has strengthened age checks

TikTok's US joint venture said in a court filing that users are required to provide their date of birth when signing up.

The company said it had also developed age-moderation systems designed to identify children under 13 who had provided a false age.

TikTok said hundreds of employees had been trained to identify underage users and that the company removes tens of thousands of accounts belonging to children under 13.

The Justice Department said TikTok had made significant changes since its complaint was filed, including changes to its ownership, management, compliance operations and privacy practices.

It said the company had introduced measures to strengthen protections for younger users, improve age verification and give parents greater oversight.

The department said those changes had advanced the public interests behind the case and provided stronger safeguards for millions of US families.

The settlement would allow those safeguards to remain in place without the "delay and uncertainty" associated with prolonged litigation, it added.

Concerns over children's safety online continue

The settlement comes amid wider scrutiny of the impact of social media platforms on children and teenagers.

Earlier this year, former employees and whistleblowers told the BBC that some major technology companies, including Meta and TikTok, had prioritised user growth and competition over safety.

More than a dozen former employees and whistleblowers alleged that decisions inside major technology firms had allowed harmful content to be promoted in pursuit of greater engagement.

TikTok has also faced legal action outside the US.

In 2024, families in France brought lawsuits against the company following the suicides of teenagers, with lawyers alleging that its recommendation system had exposed vulnerable young people to harmful content.