Kathmandu— TikTok, ByteDance, and affiliated entities have agreed to a $400 million settlement with the United States Department of Justice (DOJ) stemming from concerns that the app violated the Children’s Online Privacy Protection Act (COPPA). The DOJ alleged that TikTok knowingly permitted children to create accounts on the platform without parental consent, collecting their personal information in violation of federal law. The agreement resolves a lawsuit filed by the DOJ in 2024 and comes after ByteDance previously agreed to establish a US-owned joint venture to address data security concerns. The settlement includes immediate payment of $300 million and an additional $100 million contingent on the cancellation of a prior settlement related to TikTok’s predecessor, Musical.ly.

Allegations of Privacy Violations

The DOJ asserted that TikTok allowed children to create regular accounts and share content with adults without obtaining necessary parental consent as required by COPPA. This law mandates that services directed towards children secure verifiable parental permission before collecting personal information from users under the age of 13. The department claimed TikTok collected data from these underage users, enabling them to create and distribute short-form videos and messages on the platform’s broader network.

Terms of the Settlement

Under the terms of the agreement, TikTok will immediately pay $300 million to the DOJ. An additional $100 million will be paid upon the cancellation of a previous settlement involving Musical.ly, which TikTok acquired. The DOJ stated that since initiating legal action, TikTok has implemented significant changes and bolstered safeguards designed to enhance children’s privacy.

Government Response

Associate Attorney General Stanley E Woodward Jr hailed the settlement as “a major victory for American children and parents.” He emphasized the Department of Justice's commitment to protecting children online and ensuring companies uphold their legal obligations regarding personal information. Assistant Attorney General Brett Shumate added that the agreement represents “substantial progress” and a successful resolution to the matter.

ByteDance’s Prior Actions

The settlement follows ByteDance’s earlier decision in January to establish a majority US-owned joint venture, aimed at securing domestic data control and averting a potential ban of the app which is used by over 200 million Americans. This move was intended to address national security concerns raised about the platform's ties to China.

TikTok has been contacted for comment on the settlement. The DOJ anticipates this resolution will reinforce protections for families and ensure greater accountability from online platforms regarding children’s privacy.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.