The Department of Justice (DOJ) announced on August 21, 2026, that it has reached a $400 million settlement with TikTok and its parent company ByteDance concerning child safety on the platform. This settlement follows a complaint filed by the DOJ in 2024, which accused TikTok of violating children's privacy by illegally collecting their information through the app.
As part of the settlement, TikTok will pay $300 million to the federal government immediately to address compliance with the Children’s Online Privacy Protection Act, which restricts online services from collecting personal information from children under 13. An additional $100 million will be paid after a federal court vacates a previous decree related to Musical.ly, TikTok's predecessor.
Associate Attorney General Stanley Woodward stated, "The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations." He emphasized that this resolution secures a significant recovery while reinforcing protections for families.
The dispute has historical roots, as Musical.ly previously settled with the Federal Trade Commission (FTC) in 2019 for $5.7 million over allegations of illegally collecting information from children under 13. Federal officials claim that issues persisted after Musical.ly transitioned to TikTok.
The DOJ, prompted by a referral from the FTC, filed a lawsuit against TikTok and ByteDance in August 2024, alleging that TikTok allowed millions of children under 13 to create accounts outside its more restrictive children's experience and collected personal information without parental consent.
The DOJ noted that TikTok has made significant changes to its ownership, management, compliance functions, and privacy practices. The department stated, "The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight."
This settlement addresses one aspect of the government's ongoing scrutiny of TikTok, which has also faced national security concerns due to ByteDance's connections to China. In 2024, Congress enacted a law requiring the company to divest its U.S. operations or face a nationwide ban. Earlier this year, ByteDance established a majority American-owned venture to oversee TikTok’s U.S. operations, alleviating the immediate threat of a shutdown.