TikTok reaches $400 million settlement with Justice Department over children's privacy
Summary
TikTok has agreed to pay $400 million to settle a 2024 lawsuit from the U.S. Department of Justice. The lawsuit claimed TikTok broke laws protecting children’s privacy by collecting information from kids under 13 without proper parental consent.Key Facts
- TikTok will pay $300 million now and $100 million later after an order clears a previous consent agreement related to Musical.ly.
- The lawsuit accused TikTok and its parent company ByteDance of not getting permission before collecting data from children under 13.
- TikTok allegedly did not delete accounts even when it knew they belonged to kids under 13.
- TikTok restructured ownership in the U.S. by forming a joint venture with Oracle, Silver Lake, and MGX in January 2024.
- The Department of Justice said protecting children online is its priority and called the settlement a major win for families.
- Other companies like Meta are also facing legal actions over children’s online privacy under the same federal law called COPPA.
- The settlement ends this lawsuit but social media companies continue to face scrutiny over kid’s safety and privacy online.
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