TikTok and its parent company ByteDance have agreed to pay $400 million to settle a US government lawsuit accusing the social media platform of illegally collecting children’s personal data.

TikTok and its parent company, ByteDance, have reached a significant out-of-court settlement, agreeing to pay $400 million to resolve a lawsuit brought by the US government.

The lawsuit accused the popular social media platform of unlawfully collecting personal data from children.

This settlement, announced by the US Department of Justice, effectively concludes the case without allowing the allegations to be tested in court or establishing any liability.

The case was brought in 2024 under the Biden administration by the DOJ and Federal Trade Commission. The government accused TikTok of knowingly allowing millions of children under age 13 to create regular accounts and collecting and retaining their personal information without parental consent. It also alleged that TikTok frequently failed to delete children’s accounts and data when requested by parents.