August 27, 2026 - 08:04

TikTok and its parent company, ByteDance, have agreed to pay $400 million to settle a Department of Justice lawsuit over child privacy violations. The settlement resolves claims that the video-sharing platform collected personal data from users under 13 without parental consent, in breach of the Children's Online Privacy Protection Act, or COPPA.
The lawsuit, filed jointly with the Federal Trade Commission, alleged that TikTok knowingly allowed children to create accounts and interact with adults, while also failing to delete data from underage users when requested. The company was also accused of using default settings that made children's accounts public, exposing them to potential predators and inappropriate content.
Under the settlement, TikTok must pay the fine and implement stricter age verification measures. The company will also be required to limit live streaming and direct messaging for minors, and to delete data collected from children unless parents explicitly approve its use. The agreement includes a court order that bars TikTok from misrepresenting its data practices and requires regular compliance reports to the FTC.
TikTok did not admit wrongdoing but said in a statement that it is pleased to resolve the matter and has already made changes to its platform to better protect younger users. The settlement is one of the largest ever under COPPA, signaling a tougher federal stance on digital privacy for children. The funds will be distributed to affected families and used for consumer relief programs.
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