The U.S. Department of Justice announced a $400 million settlement with TikTok and its parent company, ByteDance, resolving allegations that the video-sharing platform violated federal children’s privacy laws by knowingly collecting personal data from minors under 13 without parental consent, according to an official DOJ statement.
DOJ Settlement Terms and Financial Breakdown
Under the terms of the agreement announced on Friday, TikTok will pay $300 million immediately. The remaining $100 million will become due once a federal court enters an order vacating a 2019 consent decree that was originally tied to TikTok’s predecessor, Musical.ly, according to the DOJ. The initial lawsuit, filed in the Central District of California in August 2024, charged that the defendants allowed children to create accounts without parental knowledge and failed to comply with parental requests to delete accounts and collected data, violating the Children’s Online Privacy Protection Act (COPPA).
Comparison of Federal Privacy Actions Against TikTok
In 2019, Musical.ly agreed to a $5.7 million civil penalty with the Federal Trade Commission for COPPA violations, which was the largest penalty of its kind at the time, according to former FTC Chair Joe Simon. While that earlier agreement required the company to prevent children under 13 from creating accounts, the 2024 DOJ lawsuit alleged TikTok struggled to remove underage users and maintained personal data—including information usable for targeted advertising—even after employees raised internal concerns.
Did you know? The 2019 FTC settlement involved a $5.7 million penalty against Musical.ly, making the newly announced $400 million DOJ settlement more than 70 times larger than the previous enforcement action.
Mandated Platform Changes and Corporate Restructuring
Beyond the financial penalties, the settlement includes measures intended to strengthen protections for young users, such as stronger age-related controls, additional safeguards for children, and measures designed to give parents enhanced oversight of their children’s activity and personal information. The agreement does not include an admission of wrongdoing by TikTok or ByteDance. At the start of the litigation, TikTok stated that most allegations related to past practices that were factually inaccurate or already addressed, and representatives did not immediately respond to new requests for comment.
The resolution arrives amid broader corporate changes for the platform. In compliance with a September 2025 Executive Order issued by U.S. President Donald Trump, TikTok USDS Joint Venture LLC was established in January. Through that deal, ByteDance sold a majority stake in TikTok to Oracle, Silver Lake, and the Emirati investment firm MGX to place U.S. operations under American control.
Frequently Asked Questions
How much does TikTok have to pay in the DOJ settlement?
TikTok must pay a total of $400 million, split into a $300 million immediate payment and a $100 million payment contingent on a court vacating a 2019 consent decree, according to the DOJ.
What federal law did TikTok allegedly violate?
The DOJ alleged that TikTok and ByteDance violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from children under 13 without parental consent.
Did TikTok admit wrongdoing in the agreement?
No, the settlement does not require TikTok or ByteDance to admit any wrongdoing.
What happened to the 2019 Musical.ly case?
The 2019 case resulted in a $5.7 million FTC penalty for COPPA violations against Musical.ly. The new settlement includes provisions to vacate that prior consent decree once final court orders are entered.
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