TikTok and its Chinese parent company, ByteDance, have agreed to a $400 million settlement following a federal lawsuit that alleged the platform had violated U.S. children’s online privacy laws.
The Department of Justice (DOJ) announced the agreement on Friday after allegations that TikTok collected and retained data from young users without parental consent. The lawsuit also claimed the platform knowingly permitted children to create accounts and interact with adults since 2019.
The complaint initially stemmed from a Federal Trade Commission (FTC) investigation into the platform. The DOJ filed its lawsuit against TikTok in 2024, prompting the company to implement changes such as features for enhanced parental oversight and age-related controls.
In a statement, the Department of Justice said: “Those developments have materially advanced the public interests underlying the Department’s litigation and have strengthened protections for millions of American families.”
The settlement follows a divestment deal secured by former President Donald J. Trump in September 2023, after which ByteDance sold a majority stake in its U.S. operations to non-Chinese investors in January 2026. This action was required by legislation passed in 2024 that mandated the company divest or face a U.S. ban.
Additionally, TikTok faces separate legal challenges. In Pennsylvania, the platform is under investigation for alleged addictiveness and harm to children. Pennsylvania’s Attorney General Dave Sunday stated: “TikTok has built its empire based on a model of addictiveness at all costs.”
