TikTok Reaches $400M Settlement With The Justice Department Over Violating Children’s Online Privacy Protection Act – AfroTech
TikTok has reached a $400 million settlement with the Justice Department.
CBS News reports that the social media platform was sued in 2024 over alleged violations of the Children’s Online Privacy Protection Act (COPPA). The lawsuit, filed in the U.S. District Court for the Central District of California, alleged that for young users, parents were not informed that data on their children was being collected and retained. The lawsuit, which came from a Federal Trade Commission investigation, also alleged that since 2019, children were allowed to set up accounts and engage with adults on the platform.
A press release confirmed that TikTok has settled the lawsuit with the Department of Justice for $400 million. Of that amount, $300 million will be paid immediately. The remaining $100 million will be paid when a court vacates an existing consent decree against Musical.ly, TikTok’s predecessor.
The settlement ranks among the largest recoveries ever obtained in a COPPA case, according to the press release.
“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.”
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division commented:
“Companies that collect children’s personal information must comply with the law. This resolution secures a significant monetary recovery and reflects the Department’s commitment to ensuring children receive the full protections that Congress mandated.”
TikTok is owned by ByteDance, but its ownership structure has evolved as reflected in an agreement reached in December 2025. As AFROTECH™ previously reported, after lawmakers passed the Protecting Americans from Foreign Adversary Controlled Applications Act in 2024, ByteDance was required to sell TikTok’s USA operations to U.S. investors to avoid being banned in the country.
Since January 2026, TikTok has been managed by a new entity comprising a group of primarily U.S.-based investors, including Oracle, Silver Lake, and MGX, who own a 50% stake. The remaining stake is held by investors in ByteDance, who collectively own just over 30%, while ByteDance retains a 19.9% stake.
