Scoop: DOJ, TikTok settle for $400 million in children's privacy suit
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The Justice Department and TikTok, along with parent company ByteDance, have reached a $400 million settlement to resolve allegations of violating children's online privacy laws, per an announcement first shared with Axios.
Why it matters: The Biden administration's DOJ first filed the suit in 2024. TikTok will clear the allegations it violated the Children's Online Privacy Act by paying a total of $400 million, without undergoing further litigation or admitting wrongdoing.
- Since the lawsuit was filed, "TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices," per the DOJ release.
- The settlement is one of the largest recoveries ever obtained in a case under the privacy law, the DOJ release states.
What they're saying: "This settlement is a major victory for American children and parents," associate attorney general Stanley Woodward said in the release.
- "The Department's priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve."
- The DOJ maintains that TikTok's adjustments since 2024 have "materially advanced the public interests underlying" the DOJ's original suit and "strengthened protections for millions of American families."
- The changes as part of the settlement negotiations included stronger safeguards for youths, better age-related controls, and measures to allow parents to provide more oversight, per DOJ.
Flashback: When DOJ filed the lawsuit in 2024 under former attorney general Merrick Garland, along with the Federal Trade Commission, the government accused TikTok of violating a previous consent order from 2019 in a number of ways, including:
- "Knowingly permitting children to create regular TikTok accounts and to create, view, and share short-form videos and messages with adults and others on the regular TikTok platform."
- Unlawfully collecting and retaining children's email addresses and other personal information.
The big picture: TikTok was saved by the Trump administration multiple times after a divest-or-ban law passed and was upheld by the Supreme Court.
- After delayed enforcement, a U.S. joint venture allowed the app to continue operating in the U.S. without a ban.
The bottom line: That's two wins for TikTok under Trump 2.0. The settlement may be expensive, but it's better for the company than continued litigation with DOJ.
