TikTok Agrees to $400 Million Settlement With DOJ Over Children’s Privacy Claims

TikTok has agreed to pay $400 million to resolve a U.S. Department of Justice lawsuit alleging the social media platform illegally collected personal information from children under the age of 13.

The settlement, announced August 21, 2026, represents one of the largest recoveries under the federal Children’s Online Privacy Protection Act, commonly known as COPPA.

The lawsuit was filed by the Department of Justice in 2024 following a referral from the Federal Trade Commission. The government alleged that TikTok, its parent company ByteDance, and affiliated companies knowingly allowed children under 13 to create accounts while collecting and retaining their personal information without obtaining the parental consent required under federal law.

The settlement resolves the government’s allegations without a determination of liability.

TikTok to Pay $400 Million

Under the settlement, TikTok will pay $300 million immediately and another $100 million after a court formally ends a separate agreement involving TikTok’s predecessor, Musical.ly.

In 2019, TikTok’s predecessor, Musical.ly, reached an agreement with the FTC over allegations involving children’s privacy. As part of that deal, the company paid $5.7 million and became subject to a consent decree, essentially a court-enforced set of rules it agreed to follow.

Then, in 2024, the DOJ filed a new lawsuit, alleging that TikTok was still violating children’s privacy laws. TikTok has now agreed to pay $400 million to settle that case.

The DOJ is asking the court to end that older agreement because TikTok has changed significantly since 2019, including changes to its ownership and privacy practices.

Importantly, ending the old consent decree does not mean TikTok is no longer subject to children’s privacy laws. It simply removes the additional requirements imposed by that particular 2019 court order. TikTok still has to comply with COPPA, the federal law protecting the personal information of children under 13.

DOJ Alleged Children Under 13 Were Allowed to Create Accounts

The government’s 2024 lawsuit alleged that TikTok knowingly allowed millions of children under 13 to create regular accounts on the platform despite restrictions set forth in the company’s prior agreement with the FTC.

According to the DOJ, TikTok relied on inadequate internal processes to identify and remove accounts belonging to children.

The government also alleged that TikTok collected and retained information from younger users, including email addresses and online activity data, without properly notifying parents or obtaining parental consent.

The lawsuit further alleged that parents encountered difficulties in exercising their rights under COPPA, including in requesting the deletion of their children’s accounts and associated personal information.

TikTok did not admit liability as part of the settlement.

What Is COPPA?

The Children’s Online Privacy Protection Act is a federal law designed to protect the privacy of children under 13 when they use websites, apps, and other online services.

Among other requirements, COPPA generally requires covered online services to provide notice and obtain verifiable parental consent before collecting certain personal information from children under 13.

The law has taken on increasing importance as children spend more time using social media platforms, gaming services, apps, and other digital products.

Settlement Comes Amid Increased Scrutiny of Social Media Platforms

The $400 million agreement comes as TikTok and other major social media companies face growing legal scrutiny over how their platforms affect and interact with children and teenagers.

Separate litigation across the country alleges that companies including TikTok, Meta, YouTube, and Snapchat designed features that encourage compulsive use among young people and failed to warn users and parents about potential risks adequately.

Those cases are separate from the DOJ’s privacy lawsuit. While the government’s case focused on the collection and handling of children’s personal information under COPPA, the broader social media litigation includes allegations involving platform design, youth mental health, and potentially addictive features.

Levin Papantonio’s Involvement in Social Media Litigation

Levin Papantonio is actively involved in nationwide litigation concerning alleged harms associated with social media platforms.

Levin Papantonio attorney Emmie Paulos serves as a member of the Plaintiff Steering Committee in In re: Social Media Adolescent Addiction/Personal Injury Product Liability Litigation, MDL 3047. The litigation includes claims that major social media companies designed their platforms with features that encourage excessive or compulsive use among children and teenagers.

The TikTok privacy settlement is separate from those cases. Still, it represents another significant development in the broader legal and regulatory scrutiny of children’s use of social media platforms and technology companies’ responsibilities toward younger users.

Sources: Law360, BBC, Department of Justice