TikTok to pay $400 million to settle federal lawsuit over alleged privacy law violations

(NBC, KYMA) - TikTok will pay $400 million to settle a federal lawsuit over alleged violations of children's privacy laws.

The U.S. Department of Justice said TikTok will pay $300 million immediately, with another $100 million due after an earlier consent decree involving Musical.ly is vacated.

The 2024 lawsuit accused TikTok and its China-based parent company, ByteDance, of violating federal law by collecting person information from children under 13 without parental consent.

The government also alleged the companies failed to delete children's accounts when parents requested it, and continued to maintain accounts they knew belonged to children under 13.

The settlement comes after major changes to TikTok's U.S. business.

In January, the company signed agreements with Oracle, Silver Lake and investment firm MGX to form a new U.S. joint venture.

TikTok did not immediately respond to a request for comment.

The settlement comes as social media companies face increasing legal scrutiny over children's safety and privacy, with some countries moving to restrict young people's access to social media.