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Justice Department reaches $400 million settlement with TikTok over child privacy case

The deal requires $300 million now and another $100 million after a court vacates an older Musical.ly consent decree.

  • The Justice Department announced a $400 million settlement with TikTok and China-based ByteDance on Friday to resolve allegations the app violated federal laws protecting children's online privacy.
  • Filed in 2024, the Justice Department lawsuit alleged the platform permitted children under 13 to create accounts while collecting personal information without parental consent in violation of COPPA.
  • Under the agreement, TikTok will pay $300 million immediately, with $100 million due upon vacating a prior consent decree against predecessor Musical; the firm committed to implementing enhanced age-related controls and parental oversight.
  • Associate Attorney General Stanley called the settlement a "major victory for American children and parents," while the company has since overhauled its ownership, management, and privacy practices.
  • Recently, lawmakers questioned TikTok CEO Shou Chew regarding a report that the app disabled algorithmic safeguards for roughly 10% of American users, even as it operates under a new American-owned joint venture.
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Forbes broke the news in Jersey City, United States on Friday, August 21, 2026.
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