TikTok settles with feds over child safety for $400M

In a 2024 lawsuit, the Department of Justice claimed TikTok violated a federal law protecting children under 13 from accessing the social media app. FILE - A TikTok sign is displayed on top of their building in Culver City, Calif., on Dec. 3, 2024. (AP Photo/Richard Vogel, File) (CN) — ByteDance, the Beijing-based global parent company of social media platform TikTok, settled a lawsuit brought by the Department in Justice for $400 million on Friday after the government questioned its compliance with a federal law that seeks to protect children online. ByteDance came under scrutiny of the U.S. government several years ago, after the feds said the company was failing to comply with the Children’s Online Privacy Protection Act. “This settlement is a major victory for American children and parents,” Associate Attorney General Stanley E. Woodward Jr. said in a statement. “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.” Although TikTok offers a version of the app known as “Kids Mode” for children under 13, the Justice Department said the platform had knowingly allowed millions of children to create regular accounts without parental consent. Children could simply enter false birthdays or sign up with Instagram or Google to avoid age restrictions altogether, according to the government. “For years, defendants have knowingly allowed children under 13 to create and use TikTok accounts without their parents’ knowledge or consent, have collected extensive data from those children and have failed to comply with parents’ requests to delete their children’s accounts and personal information,” the government said in a 2024 complaint filed in Los Angeles federal court. In a statement on the settlement, the government said TikTok had implemented “significant changes to its ownership, management, compliance functions and privacy practices" to come into compliance. TikTok will initially pay $300 million, along with an additional $100 million due after a permanent injunction against TikTok’s predecessor Musical.ly is set aside. The feds filed a motion to vacate a previous stipulated order against Musical.ly, which is scheduled for a hearing on Sept. 21. The settlement also comes as TikTok — long owned by Chinese company ByteDance — has also been forced to reorganize following concerns by U.S. lawmakers about national security. Although ByteDance still owns the brand globally, a separate entity now runs its operations in the United States. “In order to continue operating in the United States, defendants’ successors, TikTok Ltd. and TikTok Inc., had to be divested of foreign control,” the DOJ explained in its motion. In its motion, the Justice Department touted the “fundamental restructuring of [TikTok] from foreign-controlled to domestic-owned,” as well as “new trust and safety commitments by the new owners.” Representatives for TikTok and the DOJ did not immediately respond to requests for comment. Our weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.