Daijiworld Media Network - Washington
Washington, Aug 22: TikTok has agreed to pay $400 million to settle a lawsuit brought by the US Department of Justice alleging that the social media platform violated federal children's privacy laws.
Under the settlement announced by the Justice Department on Friday, TikTok will pay $300 million immediately and a further $100 million after an earlier consent decree against its predecessor company Musical.ly is vacated.
US Associate Attorney General Stanley E Woodward Jr described the settlement as a major victory for American children and parents, saying it would strengthen protections for children online and ensure that companies handling children's personal information meet their legal obligations.
The lawsuit, filed by the Justice Department in 2024, focused on allegations that TikTok and its China-based parent company ByteDance violated the Children's Online Privacy Protection Act (COPPA). The law requires online services directed at children to obtain parental consent before collecting personal information from children under 13.
The US government also alleged that TikTok failed to properly respond to parents' requests to delete their children's accounts and continued to maintain accounts even when the company knew that they belonged to children under 13.
TikTok had not immediately responded to a request for comment on Friday.
The settlement comes amid major changes to TikTok's US operations. In January, the company signed agreements with investors including Oracle, Silver Lake and Emirati investment firm MGX to establish a new TikTok US joint venture.
The agreement also comes at a time when social media companies are facing increasing legal scrutiny over children's safety, privacy and online exposure. Several countries have introduced or considered restrictions on young people's access to social media platforms.
Meta Platforms, the parent company of Instagram, is also facing a federal trial in Oakland, California, over allegations that its platforms violated COPPA and various state laws concerning children's privacy.
The TikTok settlement resolves the Justice Department's federal lawsuit while highlighting growing pressure on technology companies to strengthen safeguards for children and protect their personal information online.