TikTok Settles U.S. Lawsuit Over Child Data Collection for $400 Million
TikTok settled a U.S. Department of Justice and Federal Trade Commission lawsuit for $400 million, resolving allegations that the platform unlawfully collected personal data from millions of children under 13 and exposed them to adult users and content without parental consent or notification.
What happened
The U.S. Department of Justice and Federal Trade Commission sued TikTok in August 2024, accusing the platform of allowing millions of children under 13 years old to create accounts and knowingly collecting their personal information without parental consent or notification.
The lawsuit alleged that TikTok knowingly collected data from children including through accounts created in 'Kids Mode' and that children interacted with adult users and accessed adult content on the platform.
TikTok agreed to pay up to 400 million dollars to settle the lawsuit in August 2026, with 300 million dollars paid immediately and 100 million dollars in additional payments.
Reported impact
Children under 13 years old had their personal information collected without parental consent and were exposed to adult users and adult content on the platform.
Parents' requests to delete their children's accounts were not honored by the company.
Index analysis
Since the 2024 complaint, TikTok experienced significant changes in ownership, management, compliance procedures, and privacy practices, including measures to strengthen safeguards for young users and parental controls.
TikTok transferred majority control of its U.S. operations to an American-led joint venture in January 2026, with ByteDance retaining less than 20% ownership.
Governance controls
The settlement did not include an admission of wrongdoing by TikTok.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.