TikTok Agrees to $400 Million Settlement in US Children's Privacy Case
FlatRigor 5729 sources
The Story
TikTok has agreed to pay $400 million to settle a lawsuit with the US Department of Justice (DOJ) over alleged violations of children's online privacy laws. The DOJ announced the settlement on Friday. The settlement is one of the largest recoveries ever obtained in a case under the Children's Online Privacy Protection Act (COPPA). TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly. The DOJ and Federal Trade Commission (FTC) sued TikTok and its Chinese parent company ByteDance in August 2024 during former President Joe Biden's administration. The lawsuit alleged that TikTok failed to protect children's privacy and illegally collected their information, including names and email addresses, without parental consent for users under 13. The case dates back to 2019 when the US filed a COPPA lawsuit against Musical.ly, which ByteDance bought in 2017 and merged into TikTok. Associate Attorney General Stanley Woodward Jr. called the settlement a major victory for American children and parents. The DOJ stated that since the lawsuit was filed, TikTok has undergone changes to its ownership, management, compliance functions, and privacy practices. The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight. In 2024, Biden had pushed for TikTok to be banned or forced to sell its US operations, which happened last year with Donald Trump's support. TikTok's US operations are now 81% owned by a consortium of investors, while ByteDance maintains a 19% stake. The lawsuit alleged that even accounts created in a "Kids Mode" designed for users under 13 had collected email addresses and other personal information. The settlement resolves the allegations without TikTok admitting wrongdoing or facing further litigation. The same COPPA legislation is currently being used by 29 states to sue Meta for misusing children's data, with Meta denying the allegations.
The Spread
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What they agree on
- TikTok and its parent company ByteDance agreed to a $400 million settlement with the US Department of Justice.
- The settlement resolves allegations that TikTok violated the Children's Online Privacy Protection Act (COPPA) by illegally collecting children's personal information.
- The agreement includes an immediate payment of $300 million, with an additional $100 million contingent on vacating a prior consent decree against Musical.ly.
- The lawsuit was filed by the Biden administration's DOJ in 2024.
- The DOJ stated that TikTok has since implemented changes to its privacy practices and safeguards for younger users.
Where they split
- Daily Mail emphasizes the settlement as "one of the largest settlements agreed by Big Tech" and a "major victory for parents and their children," while NHK World-Japan and France 24 report the facts of the settlement without such evaluative language.
- Euronews and The Verge provide specific details about the lawsuit's allegations, noting that even "Kids Mode" accounts collected personal information, and that the case dates back to a 2019 lawsuit against Musical.ly.
- Rappler and The Peninsula Qatar highlight the role of ByteDance, TikTok's Chinese parent company, in the settlement, while other outlets focus more on TikTok itself.
- Fox Business and Axios mention the political context of the lawsuit, including former President Biden's push for a TikTok ban or sale and the subsequent change in ownership, a detail not universally covered.
Source Perspectives
Left6 sources
Center20 sources