On Friday, August 21, 2026, the Justice Department announced a $400 million settlement with TikTok and its Chinese parent company ByteDance. The lawsuit started in 2024 under the Biden administration.
According to the lawsuit, TikTok violated the Children’s Online Privacy Protection Act (COPPA) by letting millions of kids under 13 use the platform while collecting their personal information without getting their parents’ permission.
Associate Attorney General Stanley E. Woodward Jr. called it “a major victory for American children and parents.” This is one of the largest penalties ever imposed under COPPA, the federal law designed to protect kids online since 1998.
TikTok will pay $300 million immediately with an additional $100 million later, specifically when a court order vacates a prior consent decree against TikTok’s predecessor company, Musical.ly. ByteDance absorbed Musical.ly years ago, and that old settlement is still technically on the books. This settlement clears it away once and for all.
The online child privacy allegations centered on three main violations. First, the platform allowed millions of children under 13 to create accounts when COPPA clearly prohibits this without parental consent. Second, even when parents requested account deletion, TikTok kept the accounts active. Third, TikTok collected personal information from accounts it knew belonged to children under 13, and it did so without getting permission from their parents.
The settlement includes operational changes beyond just the fine. TikTok agreed to implement stronger age-related controls, additional safeguards for children, and measures designed to give parents enhanced oversight of their children’s activity and personal information.
In parallel, Meta Platforms is currently on trial in federal court in Oakland, California, over allegations it violated laws protecting children’s online safety and privacy. Instagram’s parent company faces damages that could exceed billions. Like Snapchat and YouTube, TikTok is avoiding prolonged litigation by settling now was probably the smart business move.
But settling isn’t admitting wrongdoing. TikTok will clear the allegations of violating the Children’s Online Privacy Act by paying a total of $400 million, without undergoing further litigation or admitting wrongdoing.
For parents, the settlement means TikTok will implement better age verification, stronger parental controls, and increased transparency about what data the platform collects from children. Whether these measures actually stick, whether they work, whether TikTok finds loopholes, remains to be seen.
