TikTok to pay $400m to US in one of largest child privacy settlements

August 21, 2026

TikTok has agreed to pay $400 million to settle a US lawsuit alleging the platform violated the Children's Online Privacy Protection Act by collecting extensive data from millions of users under age 13 without proper parental consent. The settlement, originating from a 2024 Department of Justice suit against TikTok and parent company ByteDance, represents one of the largest child privacy penalties in history, though smaller than potential penalties Meta currently faces from 29 states for similar violations. Under the settlement terms, TikTok will pay $300 million immediately and another $100 million when a 2019 Federal Trade Commission consent decree is vacated.

Who is affected

Millions of TikTok users under the age of 13
Parents of underage TikTok users
TikTok (the platform)
ByteDance (TikTok's parent company)
The US Department of Justice
More than 170 million teenagers using TikTok (as cited when the lawsuit was filed)

What action is being taken

A jury trial in the Meta lawsuit started this week, with Meta accused of targeting child users and profiting from them

Why it matters

This settlement represents one of the largest penalties ever imposed for child privacy violations, holding major technology platforms accountable for protecting minors online. The case reinforces enforcement of COPPA, a federal law designed to prevent companies from collecting data on children under 13 without parental consent, and signals increased government scrutiny of social media platforms' treatment of young users. The settlement amount of $400 million exceeds previous COPPA penalties paid by YouTube ($170 million) and Epic Games ($275 million), demonstrating escalating consequences for violations. Additionally, this case is part of a broader regulatory effort to protect children online, as evidenced by similar ongoing litigation against Meta that could result in penalties exceeding hundreds of billions of dollars.

What's next

TikTok and ByteDance will immediately pay the DOJ $300 million
TikTok will pay another $100 million when the government vacates a 2019 consent decree with the Federal Trade Commission

Read full article from source: BBC