Additional Coverage:
The Justice Department and TikTok have reached a $400 million settlement over allegations that the social media platform violated children’s privacy laws.
The case, initiated in August 2024 under the Biden administration, accused TikTok of collecting, storing, and processing data from users under 13 years old without obtaining parental consent, in violation of the Children’s Online Privacy Protection Act (COPPA) of 1998.
Announced on Friday, this settlement marks one of the largest recoveries in a children’s online privacy case to date. TikTok has agreed to pay $300 million upfront, with an additional $100 million to be paid following the vacating of a prior consent decree, according to the Justice Department. TikTok has yet to issue a public comment on the agreement.
Sources close to the discussions revealed earlier this year that the settlement funds might be allocated toward President Donald Trump’s Washington, D.C., “beautification” initiatives, including the proposed 250-foot triumphal arch near Arlington National Cemetery. The funds could potentially be directed to the Department of the Interior, the Department of Commerce, or both.
Associate Attorney General Stanley E. Woodward Jr. emphasized the department’s commitment to protecting children online, stating, “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.”
The Justice Department clarified that the claims addressed in the settlement are allegations only, and no determination of liability has been made.