ByteDance agreed to pay $400 million to settle a Justice Department lawsuit alleging TikTok violated the Children's Online Privacy Protection Act by letting millions of children under 13 open regular accounts without parental consent.
The government's 2024 complaint said kids could simply enter false birthdays or sign in via Instagram or Google to dodge the platform's Kids Mode entirely, despite TikTok collecting extensive data on them and allegedly ignoring parental deletion requests.
TikTok will pay $300 million upfront and another $100 million once a separate injunction against predecessor Musical.ly is vacated at a September hearing. The settlement arrives alongside TikTok's forced restructuring away from Chinese ownership over national security concerns.
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