TikTok settles with US Justice Department for $400m over child privacy laws

The United States Department of Justice (DOJ) has announced a $400m settlement with the short-video app TikTok over concerns that the platform had violated children’s online privacy.

The DOJ said on Friday it had entered into a settlement with TikTok, ByteDance and affiliated entities over concerns about compliance with the Children’s Online Privacy Protection Act, which requires services aimed at children to obtain parental consent to collect personal information from users under age 13.

The department said TikTok knowingly permitted children to create regular accounts, and then create and share short-form videos and messages with adults and others on the regular TikTok platform. TikTok collected personal information from these children without obtaining consent from their parents.

TikTok will pay the DOJ $300m now and another $100m after a court cancels a previous settlement made with TikTok’s predecessor, Musical.ly.

“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley E Woodward Jr said in a news 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.”

In January, ByteDance agreed to create a majority US-owned joint venture to secure domestic data and avoid a US ban on the app used by more than 200 million Americans.

The DOJ said that since it took TikTok to court, the company has made drastic changes and strengthened safeguards to protect children’s privacy.

Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said, “This settlement reflects substantial progress, secures a significant monetary recovery, and brings this matter to a successful conclusion.”