New Delhi, August 22, 2026 (Yes Punjab News)
TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to resolve US Justice Department litigation alleging violations of children’s online privacy laws, in one of the largest recoveries under the Children’s Online Privacy Protection Act (COPPA).
Under the proposed settlement, TikTok will pay $300 million immediately and an additional $100 million after a court enters an order vacating a previous consent decree imposed on Musical.ly, TikTok’s predecessor. The settlement remains subject to court approval.
The Justice Department said the resolution addresses allegations that TikTok and ByteDance failed to comply with COPPA requirements concerning the collection and handling of personal information belonging to children under 13.
“Companies that collect children’s personal information must comply with the law,” Assistant Attorney General Brett A. Shumate said, adding that the settlement would secure a significant monetary recovery while reinforcing protections mandated by Congress.
The department said TikTok has made significant changes to its ownership, management, compliance functions and privacy practices since the lawsuit was filed in 2024. The company has also introduced measures aimed at strengthening safeguards for younger users, improving age controls and enhancing parental oversight.
The DOJ lawsuit, filed in the US District Court for the Central District of California, alleged that millions of children under 13 were able to create regular TikTok accounts without parental consent. It further alleged that the company collected and retained children’s personal information and did not always comply with parents’ requests to delete accounts and associated data.
COPPA requires online services to obtain parental consent before knowingly collecting personal information from children under 13, subject to limited exceptions.
The settlement comes after years of regulatory and political scrutiny of TikTok in the United States, including concerns over data security and ByteDance’s ownership of the platform. US lawmakers passed legislation in 2024 requiring TikTok to be separated from ByteDance or face restrictions in the country.
The latest settlement resolves the children’s privacy litigation, although the Justice Department noted that the claims were allegations and that there had been no determination of liability.
FOLLOW NOW
