TikTok and ByteDance have agreed to a $400 million settlement with the U.S. Department of Justice over allegations that the platform violated federal children’s privacy law by collecting and retaining personal information from users under 13 without the required parental consent.
The Justice Department announced the agreement on August 21, 2026, calling it one of the largest recoveries ever obtained in a case involving the Children’s Online Privacy Protection Act, or COPPA.
Under the agreement, TikTok will pay $300 million immediately. Another $100 million becomes due if a court enters an order vacating a 2019 consent decree against Musical.ly, TikTok’s predecessor.
The allegations have not resulted in a finding of liability. TikTok has disputed the government’s claims, and DOJ says the company has made significant privacy and compliance changes since the lawsuit was filed.
Can TikTok Users Claim Part of the $400 Million?
No consumer claim process has been announced.
The agreement resolves a federal enforcement case, not a class action settlement that creates individual payments for parents, children, or other TikTok users.
A separate private lawsuit involving allegations about children’s data on TikTok remains active in federal court in California.
What Was TikTok Accused of Doing?
The Justice Department filed its case against TikTok, ByteDance, and affiliated entities in August 2024 after a referral from the Federal Trade Commission.
The complaint alleges that TikTok knowingly allowed children under 13 to create and use regular TikTok accounts while collecting personal information without notifying parents or obtaining verifiable parental consent.
The government also accused TikTok of failing to properly delete some children’s accounts and data after receiving parental requests.
The Government Said Children Could Bypass TikTok’s Age Gate
According to the complaint, TikTok did not require every user to pass through an age gate until at least 2022.
Government lawyers alleged that this allowed some children to access the regular version of TikTok without providing age information, and that employees internally referred to the gap as an age-gate “loophole.”
Children using regular accounts could access features outside TikTok’s under-13 Kids Mode while the platform allegedly collected and retained information associated with those accounts.
DOJ Also Challenged Data Collection in Kids Mode
The complaint alleges TikTok collected information from Kids Mode users including IP addresses, device identifiers, app activity, device information, mobile carrier information, and other data.
The government says some of this information was combined with persistent identifiers to create profiles associated with child users.
Until at least mid-2020, TikTok also allegedly shared some Kids Mode information with Facebook and AppsFlyer for purposes that included encouraging less-active users to return to the service.
More Than 300,000 Children’s Email Reports Were Allegedly Retained
The government says Kids Mode users were required to provide an email address when submitting feedback through TikTok’s “Report a Problem” feature.
Between February 2019 and July 2022, TikTok allegedly collected more than 300,000 problem reports containing children’s email addresses.
The complaint alleges those addresses were retained longer than reasonably necessary after the reports were processed.
Parents Allegedly Had Trouble Getting Children’s Accounts Deleted
COPPA gives parents rights over personal information collected from children under 13, including the ability to request deletion.
The Justice Department alleged TikTok’s process for handling those requests was difficult and sometimes ineffective.
In one example cited in the complaint, roughly 500 of about 1,700 accounts reported as belonging to children were allegedly still active in November 2021, with several hundred remaining active into 2023.
TikTok Had Already Paid $5.7 Million Over Children’s Privacy
In 2019, Musical.ly agreed to pay $5.7 million to settle FTC allegations that it collected children’s personal information without parental consent.
That settlement also imposed a federal court order governing the company’s privacy practices.
The 2024 lawsuit alleged TikTok later violated both COPPA and that earlier order. Under the new agreement, the final $100 million payment is tied to a court order vacating the 2019 decree.
What Has TikTok Changed Since the Lawsuit?
The Justice Department says TikTok has made significant changes since the federal case was filed in 2024.
According to DOJ, those changes include stronger protections for younger users, improved age controls, enhanced parental oversight, and changes to ownership, management, compliance functions, and privacy practices.
DOJ cited those developments as part of its decision to resolve the case rather than continue prolonged litigation.
Where Does the $400 Million Go?
DOJ’s announcement does not establish a consumer compensation program or say that the money will be distributed to affected children or parents.
It confirms only the payment structure: $300 million immediately and another $100 million if the earlier Musical.ly consent decree is vacated.
A Separate TikTok Children’s Privacy Class Action Is Still Active
In re TikTok, Inc., Minor Privacy Litigation is pending in the U.S. District Court for the Central District of California.
The private plaintiffs allege TikTok collected and used children’s personal information without properly notifying parents or obtaining required consent.
TikTok sought to pause that case while the DOJ litigation was pending, but the court denied the stay request in November 2025 and allowed most of the private plaintiffs’ claims to continue.
That litigation could eventually produce separate relief, but no consumer settlement fund exists in that case at this time.
What Is COPPA?
COPPA is a federal law governing how online services collect personal information from children under 13.
Covered services generally must notify parents about their data practices and obtain verifiable parental consent before collecting certain personal information from children.
The FTC enforces the COPPA Rule, and the Justice Department can bring federal court actions based on FTC referrals.
About TikTok and ByteDance
TikTok is a short-form video platform developed by ByteDance and expanded in the United States after ByteDance acquired Musical.ly and later combined the services under the TikTok name.
TikTok’s U.S. ownership and operating structure changed in 2026 as part of a new majority American-owned joint venture. DOJ cited ownership and management changes alongside privacy reforms when announcing the settlement.
What Happens Next?
The additional $100 million depends on entry of a court order vacating the earlier Musical.ly consent decree.
Consumers do not need to file anything for the government settlement because no individual claims process exists. Any future consumer recovery would require a separate development in the private litigation or another case.
About This Page
RecallRefunds.com is a consumer information site. We are not TikTok, ByteDance, the U.S. Department of Justice, the Federal Trade Commission, a court, or a law firm, and we cannot submit legal claims or obtain compensation on a reader’s behalf. This article summarizes publicly available government records and court information and is general information rather than legal advice. The official government releases and court records are the authoritative sources.