TikTok and its parent company, ByteDance, have agreed to pay $400 million to resolve allegations by the U.S. Department of Justice concerning the treatment of children’s personal information.
The case focused on allegations that TikTok failed to adequately protect users under 13 and collected personal information without the parental consent required under U.S. law.
Under the proposed settlement:
- $300 million is to be paid immediately.
- A further $100 million would become payable following a court order connected with an earlier FTC consent decree involving Musical.ly, TikTok’s predecessor.
- The agreement also addresses TikTok’s ongoing privacy and age-verification practices.
The dispute follows earlier regulatory action against Musical.ly, which resulted in a $5.7 million penalty in 2019 over allegations involving the collection of information from children.
TikTok has since introduced stronger age-related controls, including requiring users to provide their date of birth and using systems designed to identify accounts belonging to children under 13.
The U.S. government has also acknowledged that TikTok has undergone substantial changes to its ownership, management, compliance systems and privacy practices since the original complaint was filed.
Why this matters for businesses
The case is another reminder that children’s data carries significant regulatory risk.
Companies offering online services should pay particular attention to:
• Age verification and age assurance
• Parental consent mechanisms
• Collection and retention of children’s personal information
• Privacy notices and disclosures
• Data minimisation
• Processes for identifying and removing underage accounts
• Compliance with child-specific privacy requirements
For businesses operating digital platforms, privacy compliance isn’t just about having a Privacy Policy. The underlying data practices need to work too.
Source: U.S. Department of Justice / reported developments as of August 22, 2026.
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