TikTok agrees to record $400 million settlement over US children's privacy violations
TikTok has agreed to pay $400 million to settle a lawsuit with the US Department of Justice over claims that the video-sharing platform violated federal children's privacy laws, the department announced on Friday, August 21. The settlement represents a dramatic escalation in enforcement action under the Children's Online Privacy Protection Act (COPPA), more than doubling the previous record penalty of $170 million levied against Google and YouTube in September 2019.
Chinese company ByteDance is also named as part of the settlement. In December 2025, ByteDance signed a divestment agreement transferring majority control of TikTok's US operations to American investors led by Oracle, Silver Lake, and MGX, while retaining a 19.9% ownership stake. Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly.
Allegations of systematic privacy violations
The Justice Department and Federal Trade Commission jointly sued TikTok in 2024, alleging that it had placed the safety of millions of children in jeopardy by collecting their personal data without parental permission. Regulators claimed that TikTok allowed children to use the app in addition to collecting and using personal data from young users without letting their parents know. Even accounts created in a Kids Mode intended for users younger than 13 gathered email addresses and other personal information, the suit alleged.
COPPA, enacted in 2000, bars websites from gathering the personal information of children younger than 13 without parental permission. The law empowers the Federal Trade Commission to levy fines of up to $40,000 per affected child for violations. The department described the $400 million settlement as one of the largest recoveries ever obtained from a case involving the law.
History of enforcement actions
This is not TikTok's first encounter with COPPA enforcement. In 2019, the US filed a lawsuit against Musical.ly, an app that ByteDance had acquired for between $800 million and $1 billion in November 2017 before merging it with TikTok in August 2018 to expand into the US market. That case resulted in a $5.7 million settlement, which at the time was the largest COPPA penalty ever obtained by the FTC.
TikTok did not immediately respond to a request for comment. According to an ABC News report in May, the Trump administration was considering using the funds for ongoing beautification projects, which have included resurfacing the Lincoln Memorial Reflecting Pool, renovating the White House ballroom and building an arch. It was not immediately clear what the settlement funds will be used for.
International regulatory pressure intensifies
The US settlement comes amid a growing global crackdown on the video app. The European Commission opened formal proceedings against TikTok in February 2024, shortly after the platform was designated a very large online platform subject to the strictest obligations under the Digital Services Act. In July, the European Union accused TikTok of failing to protect children through account settings that can expose them to risks like cyberbullying and predatory behavior. Under the DSA, TikTok could face fines of up to 6% of its global annual turnover if found in violation.
A high level of protection should not be an opt-in; it should be the default
EU tech chief Henna Virkkunen said in a statement at that time. Under the DSA, children's account settings have, by default, the strongest safety and security protections. TikTok's account settings fail to meet this standard, as they expose minors' accounts and content too widely, the EU said in its preliminary view.
Britain's communications regulator Ofcom opened its investigation into TikTok on July 16, 2026, under the Online Safety Act 2023, examining whether the platform is doing enough under UK law to protect children from harmful content. If found in violation, TikTok could face fines of up to £18 million or 10% of its qualifying worldwide revenue, whichever is higher. The investigation will seek to establish whether there are reasonable grounds to believe that TikTok has failed, or is failing, to comply with its legal obligations, Ofcom said, adding that it would in particular look at TikTok's age-verification model.
TikTok has faced prior UK enforcement action over children's privacy issues. In 2023, the UK's Information Commissioner's Office fined the platform £12.7 million for misusing children's data, finding that as many as 1.4 million children under 13 used the app in 2020 despite the platform's rules prohibiting such young users.
