TikTok, ByteDance agree to $400 million US settlement over children's data privacy violations
Summary
TikTok and ByteDance have agreed to pay $400 million to resolve a US Department of Justice lawsuit alleging the social media platform violated the Children's Online Privacy Protection Act by collecting data on children without parental consent. Under the settlement, TikTok will pay $300 million upfront and an additional $100 million once a prior consent decree involving Musical.ly is vacated. The DOJ stated this is among the largest COPPA-related settlements. The settlement ends court oversight of TikTok's privacy practices, though the company has already implemented improved age controls and parental oversight features. The DOJ sued TikTok in 2024 on behalf of the Federal Trade Commission, claiming millions of children under 13 were allowed to create accounts without parental consent, making it difficult for parents to request account deletions. The settlement comes amid years of regulatory scrutiny over national security concerns, with US Congress passing 2024 legislation requiring ByteDance to sell TikTok unless it divested, leading to a January deal that transferred parts of TikTok's US operations to a new American-led venture.
(Source:Edex Live)