TikTok was set to pay $1B in 2024 over kids privacy breaches – years before DOJ’s sweetheart $400M deal: sources
TikTok Nears $400M Settlement with DOJ Over Child Data Privacy Breaches
The Justice Department is close to finalizing a $400 million settlement with TikTok regarding child data privacy breaches, a significant decrease from the $1 billion the social media app was willing to pay in 2024 to settle the same claims, according to sources.
In June 2024, the Federal Trade Commission under the Biden administration revealed that TikTok had collected data on children under 13 without parental consent, violating the Children’s Online Privacy Protection Act (COPPA).
Advocates for online safety have long advocated for stricter regulations on targeted advertising by social media companies, alleging that they exploit vulnerable children for financial gain.
TikTok executives, already facing the threat of a total ban in the US, were eager to resolve the matter. In negotiations with the FTC, TikTok agreed in principle to a $1 billion settlement and additional safety measures, including a ban on targeted ads for minors and limits on late-night notifications.
However, the deal fell through as officials in the Biden DOJ were hesitant to finalize it, fearing it could undermine Congress’s efforts to ban TikTok legislatively.
Recently, reports surfaced that the Trump administration was nearing a $400 million settlement with TikTok, with the funds allocated for beautification projects in Washington DC rather than compensating victims of data privacy violations.
Advocacy groups criticized the settlement as inadequate, stating that it fails to address TikTok’s harmful practices towards children. The DOJ defended its approach, emphasizing its commitment to upholding the law and protecting taxpayer dollars.
Despite the ongoing legal battle, TikTok did not respond to requests for comment, and the case is expected to extend beyond the presidential election.
President Trump had previously promised to “save TikTok” if elected, and his administration played a key role in shaping the deal that allowed a US entity to take over TikTok and prevent a ban.
