TikTok and parent company ByteDance have agreed to pay US$400 million (about NZ$670m) to settle a lawsuit with the US Department of Justice over claims that the video-sharing platform violated federal children's privacy laws, the department announced on Friday (local time).

Federal prosecutors accused TikTok of collecting and keeping data from children without notifying parents or receiving consent.

Under the settlement, TikTok will pay US$300 million immediately and an additional US$100 million upon entry of an order vacating a prior consent decree entered with the Federal…

The Justice Department and Federal Trade Commission jointly sued TikTok in 2024.