07 / 10
TikTok agrees to $400 million settlement
TikTok and ByteDance will pay the US to end a children’s privacy lawsuit.
What happened
TikTok and ByteDance agreed to pay the US Justice Department to resolve a lawsuit alleging the platform collected children’s personal data without required parental consent. The case concerned the federal children’s online privacy law. The agreement ends the case without an admission of wrongdoing and follows changes to TikTok’s US ownership and privacy practices.
Numbers
- $400 millionTotal payment under settlement
- $300 millionDue immediately to Justice Department
- $100 millionDue after decree is vacated
- Under 13Users covered by consent rule
Questions
- What does COPPA require?
- Online services aimed at children must obtain parental consent before collecting personal information from users under thirteen.
- Why did the department settle?
- The department pointed to changes in ownership, management, compliance functions, and privacy practices concerning younger users since the lawsuit began.
- How does ownership affect the case?
- Earlier this year, ByteDance sold a majority stake in its US entity, a change cited alongside revised privacy practices.
- How unusual is the settlement?
- The department called it among the largest recoveries under COPPA, after earlier penalties against YouTube and Epic Games.
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The catch
The agreement includes no admission of wrongdoing; coverage gives no finding on the underlying allegations.