DOJ Hits TikTok With $400 Million Penalty Over Illegal Data Collection on Children
Federal regulators secure massive financial recovery as federal youth privacy enforcement escalates across social media.
The U.S. Department of Justice has finalized a $400 million settlement with TikTok, resolving a landmark federal lawsuit that accused the social media platform of violating federal children’s privacy laws. Under the terms of the agreement announced Friday, the company will immediately pay $300 million to the federal government.
The remaining $100 million payment is contingent on a court order vacating a previous consent decree involving Musical.ly, the platform’s predecessor app. The settlement stems from a civil complaint filed in 2024 by federal prosecutors and the Federal Trade Commission, which alleged that TikTok engaged in widespread non-compliance with the Children's Online Privacy Protection Act.
Enacted by Congress in 1998, the law prohibits digital platforms from collecting, using, or disclosing personal data from children under 13 without verifiable parental consent. Federal regulators alleged that TikTok failed to obtain parental permission before gathering data on millions of young users across the United States. The complaint also detailed allegations that TikTok retained user accounts belonging to children under 13 even after receiving explicit deletion requests from parents.
In addition, federal authorities stated that the company knowingly permitted young children to create accounts and post content without implementing adequate safeguards or verifying user ages.
“This settlement is a major victory for American children and parents,” said U.S. Associate Attorney General Stanley E. Woodward Jr. in an official statement detailing the resolution. He added that the Justice Department’s priority remains ensuring online protections for minors and holding tech firms accountable to statutory obligations.
The financial penalty comes alongside significant corporate restructuring for TikTok’s U.S. operations. In January, the platform signed binding agreements with American tech giant oracle, private equity firm Silver Lake, and United Arab Emirates-based investment entity MGX to establish a new joint venture governing its domestic operations.
The regulatory enforcement action against TikTok reflects a broader federal crackdown on major social media platforms over youth safety and data gathering practices. Meta Platforms is currently defending itself in a federal court trial in Oakland, California, against allegations from state attorneys general and federal regulators that Instagram violated COPPA and state privacy statutes.
