TikTok has agreed to pay $400 million to settle a lawsuit brought by the U.S. Department of Justice over claims that the company violated children’s privacy laws. The legal action, which began in 2024, alleged that TikTok and its parent company ByteDance failed to protect the personal information of children under 13.
Under the settlement, TikTok will pay $300 million immediately. The remaining $100 million will be paid after an order is issued to overturn a previous legal agreement involving Musical.ly, which was acquired by ByteDance and became part of TikTok.
U.S. Associate Attorney General Stanley E. Woodward Jr. called the settlement a “major victory for American children and parents.” He emphasized that the Department of Justice aims to protect children online and ensure companies handle personal data responsibly.
Since the lawsuit was filed, TikTok has made significant changes, including restructuring its U.S. operations. In January 2026, the company formed a new joint venture with major investors like Oracle, Silver Lake, and MGX. This move came after concerns about TikTok’s ties to China.
TikTok representatives did not immediately respond to requests for comment on the settlement.
The lawsuit accused TikTok of failing to obtain parental consent before collecting data from children under 13. It also alleged that the company ignored parent requests to delete their children’s accounts and kept accounts active even when they knew the users were underage.
This settlement comes as social media companies face increasing legal challenges over children’s safety and privacy. For example, Instagram’s owner, Meta Platforms, is currently on trial in California for similar allegations under the Children’s Online Privacy Protection Act (COPPA) and other state laws.