TikTok and ByteDance agreed on Aug. 21 to pay US$400 million to settle US Justice Department claims that the app collected data from children under 13 without parental consent, violating the Children’s Online Privacy Protection Act (COPPA).

COPPA requires covered online services to obtain verifiable parental consent before collecting, using, or disclosing personal information from children under 13.

The 2024 lawsuit alleged that TikTok and ByteDance failed to protect children’s privacy and illegally collected young users’ information.

The case echoed a 2019 Federal Trade Commission action against Musical.ly, TikTok’s predecessor, which led to a consent order and what legal commentary described as a record COPPA penalty at the time.

Under the deal, TikTok will pay US$300 million immediately and another US$100 million after a court order vacates the 2019 consent decree.

The government said TikTok has since made significant changes to its ownership, management, compliance functions, and privacy practices.

🔗 Source: Reuters

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