The Justice Department (DOJ) and TikTok, along with its parent company ByteDance, have reached a settlement of $400 million to resolve allegations of violating children's online privacy laws. The settlement was announced on August 21, 2026, and follows a lawsuit filed by the Biden administration's DOJ in 2024. TikTok will pay the settlement amount without admitting wrongdoing or undergoing further litigation.
Since the lawsuit was filed, TikTok has made significant changes to its ownership, management, compliance functions, and privacy practices. The settlement is noted as one of the largest recoveries under the Children's Online Privacy Act. Associate Attorney General Stanley Woodward stated that the settlement is a significant victory for American children and parents, emphasizing the DOJ's commitment to protecting children online and ensuring companies meet their legal obligations.
The DOJ's original lawsuit accused TikTok of violating a previous consent order from 2019 by allowing children to create accounts and unlawfully collecting personal information. The settlement negotiations included implementing stronger safeguards for youths and better age-related controls to enhance parental oversight. TikTok's adjustments since 2024 have been recognized as advancing public interests and strengthening protections for families.
The lawsuit was initially filed under former Attorney General Merrick Garland, and TikTok has faced scrutiny regarding its operations in the U.S. The settlement allows TikTok to avoid further litigation with the DOJ.