TikTok ordered to pay Sh52 billion in US child privacy case

TikTok and its Chinese parent company, ByteDance, have agreed to pay Sh52 billion to settle a children’s privacy case in the United States, BBC reports.

The U.S. Justice Department accused the companies of breaking laws designed to protect children online.

The case focused on claims that TikTok collected personal information from children under the age of 13 without first getting permission from their parents.

The Justice Department filed the lawsuit in 2024. It alleged that the social media giant did not do enough to protect young users and illegally gathered data such as names, email addresses and other personal details.

Under the agreement, TikTok will pay Sh39 billion ($300 million) immediately, then  pay another Sh13 million ($100 million) after a court removes an earlier privacy agreement involving Musical.ly, the app that later became TikTok.

“Under the settlement, TikTok will pay $300 million immediately and an additional $100 million upon entry of an order vacating a prior consent decree entered against TikTok's predecessor, Musical.ly" the department said in a statement.

According to DW, in 2019, the U.S. Federal Trade Commission fined Musical.ly sh 741 Million ($5.7 million) for similar privacy violations.

The agency said Musical.ly knew that many children were using its platform but still failed to get parental approval before collecting their information.

Associate Attorney General Stanley Woodward said the Justice Department wants to make sure children are safe online.

He said companies that collect and handle children’s information must follow the law and take their responsibilities seriously.

TikTok did not immediately respond to requests for comment after news of the settlement emerged.

The government said TikTok has made major changes since the case was filed. These changes include adjustments to the company’s ownership, management, privacy systems and compliance teams.

Earlier this year, ByteDance agreed to create a new U.S. joint venture that would be mostly owned by American investors.

The move was meant to protect American users’ data and prevent TikTok from being banned in the United States. TikTok has more than 200 million users in the country.

TikTok’s U.S. business said it now requires every user to provide their date of birth when opening an account.

The company also said it uses advanced systems to identify children under 13 who may have lied about their age.

According to a court filing, TikTok has hundreds of workers trained to find and remove accounts belonging to underage users.

The company said it deletes tens of thousands of such accounts regularly.

The Justice Department said the settlement will give American families stronger online privacy protection without waiting for a long court battle.