TikTok $400M Child Privacy Settlement Explained

The American branch of TikTok has agreed to pay $400 million (€342 million) to settle a child privacy lawsuit brought by the U.S. Department of Justice, closing one of the largest children's online privacy cases in history. The settlement, announced on Friday, resolves allegations that TikTok violated the Children's Online Privacy Protection Act (COPPA) by allowing children under 13 to create accounts without parental consent.

What led to the $400 million TikTok settlement?

The DOJ filed its complaint in 2024, alleging TikTok and parent ByteDance failed to protect children's privacy. Specifically, prosecutors said children under 13 could open accounts, and the platform unlawfully collected their emails, phone numbers, and location data. The complaint also said TikTok ignored parental requests to delete under-13 accounts, in violation of COPPA.

Since the lawsuit was filed, TikTok has undergone major ownership changes. Under pressure from President Trump, the app's U.S. operations were largely sold to American investors. The TikTok US ownership deal closed in January 2026, leaving ByteDance with only 19.9% of the new U.S. joint venture.

How much will TikTok pay?

The $400 million settlement includes two parts:

• $300 million immediate payment to the U.S. government
• $100 million tied to vacating a 2019 FTC consent decree against Musical.ly, TikTok's predecessor

The total is among the largest recoveries ever in a COPPA case, according to the Justice Department.

What is COPPA?

The Children's Online Privacy Protection Act (COPPA) is a U.S. federal law that requires websites and online services to obtain verifiable parental consent before collecting personal information from children under 13. Violations can result in significant civil penalties.

TikTok's response and safeguards

TikTok denied the allegations, saying many claims were inaccurate or already addressed. However, the company has since strengthened safeguards for younger users, including age-moderation systems, mandatory date-of-birth entry, and enhanced parental controls. "The department's priority is ensuring children are protected online," said Associate Attorney General Stanley Woodward.

Europe scrutiny continues

While the U.S. case is now settled, TikTok faces separate pressure in Europe. The European Commission issued preliminary findings in July 2026 that TikTok failed to meet child-safety requirements under the EU Digital Services Act. Regulators said minors' accounts could be made public, exposing them to unwanted contact, cyberbullying, and predatory behavior.

TikTok disputes the findings, arguing it has dozens of privacy and safety features and that accounts for users under 18 are private by default. If confirmed, the EU could fine TikTok up to 6% of its global annual turnover.

US vs EU: How enforcement compares

What this means for children's online privacy

The settlement signals heightened enforcement of children's online privacy protection in both the U.S. and Europe. For parents, it's a reminder to review privacy settings and talk to children about online safety. The case also underscores growing regulatory pressure on social media platforms to safeguard minors.

FAQ: TikTok child privacy settlement

Why did TikTok pay $400 million?

TikTok paid to settle DOJ allegations that it violated COPPA by letting children under 13 create accounts and collect their data without parental consent.

Who gets the settlement money?

The $400 million goes to the U.S. government, not directly to affected families. The Justice Department described it as one of the largest COPPA recoveries ever.

Is TikTok still owned by ByteDance?

In the U.S., ByteDance retains only 19.9% of the new American-majority joint venture that operates TikTok, following a 2026 deal.

What happens next in Europe?

The European Commission may issue a formal non-compliance decision, potentially fining TikTok up to 6% of its global revenue.