TikTok Agrees To Pay $400 Million To Settle Alleged Violation Of Children’s Privacy Law

BreakingBusinessTikTok Agrees To Pay $400 Million To Settle Alleged Violation Of Children’s Privacy LawByAntonio Pequeño IV,Forbes Staff. Pequeño is a breaking news reporter who covers tech and more.Follow AuthorAug 21, 2026, 06:28pm EDTToplineTikTok and its parent company ByteDance agreed Friday to settle allegations it violated a digital child privacy law, meaning the company will fork over $400 million in its latest in its largest settlement to date.The settlement was announced Friday.Photo illustration by Cheng Xin/Getty ImagesKey FactsTikTok will immediately pay $300 million under the terms of the settlement, according to the Justice Department, which said the company will pay another $100 million to vacate an older Musical.ly consent judgement (Musical.ly was the predecessor app to TikTok).The DOJ sued TikTok in 2024 claiming it illegally collected and kept data from children without notifying parents or receiving consent.TikTok was also accused of knowingly letting children create regular TikTok accounts, which are for ages 13 and up, which allowed them to post and share videos and message with adults.The Justice Department called the settlement “one of the largest recoveries ever obtained” in a case related to COPPA, the Children's Online Privacy Protection Act that requires websites and apps to get parental consent before collecting personal data.The Justice Department noted TikTok “has undergone significant changes to its ownership, management, compliance functions, and privacy practices,” referencing the ownership deal inked last year in which ByteDance sold a majority stake in its U.S. operations to a group of American and global investors.TikTok did not admit to wrongdoing in the case. if (!window.cnxel) { window.cnxel = {}; window.cnxel.cmd = []; var iframe = document.createElement('iframe'); iframe.style.display = 'none'; iframe.onload = function() { var iframeDoc = iframe.contentWindow.document; var script = iframeDoc.createElement('script'); sc...