Peter A Clarke

There is a commonly held view that the United States has poor privacy protections.  As a bald statement that is not correct.  Better put, it is more complicated than that. It is more accurate to say that legal privacy protections are very good in certain sectors and for certain types of information and quite poor in more general environments.  Often the 4th amendment, protecting freedom of speech, restricts privacy protections.  But there are specific laws protecting health records and child privacy which are as strong as any commensurate laws in other jurisdictions. There is no dedicted children’s privacy protection legislation however there will be a Code that is currently being developed.

The Department of Justice has announced a settlement with Tik Tok and affiliated entities for breaching the Children’s Online Privacy Protection Act (“COPPA”).  The breaches relate to the collection of children’s personal information.   The ABC has covered the story in TikTok to pay $559m in ‘one of the largest’ child privacy settlements.

The Department of Justice Statement  provides:

Today, the Department of Justice announced a $400 million settlement with TikTok, ByteDance, and affiliated entities (TikTok) resolving litigation concerning compliance with the Children’s Online Privacy Protection Act and its implementing regulations (COPPA). 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 settlement represents one of the largest recoveries ever obtained in a COPPA case.

“This settlement is a major victory for American children and parents,” said Associate Attorney General Stanley E. Woodward Jr. “The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

“Companies that collect children’s personal information must comply with the law,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This resolution secures a significant monetary recovery and reflects the Department’s commitment to ensuring children receive the full protections that Congress mandated.”

Since the Justice Department filed its complaint in 2024, TikTok has undergone significant changes to its ownership, management, compliance functions, and privacy practices. The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight. Those developments have materially advanced the public interests underlying the Department’s litigation and have strengthened protections for millions of American families.

The resolution reflects the department’s commitment to achieving practical results that protect the public. By securing a significant recovery while recognizing the substantial compliance improvements already implemented, the settlement ensures that American families continue to benefit from stronger protections without the delay and uncertainty of protracted litigation.

The Justice Department’s lawsuit was filed in the U.S. District Court for the Central District of California. The matter was handled by the Civil Division’s Enforcement and Affirmative Litigation Branch on referral from the Federal Trade Commission.

The ABC report provides:

TikTok and parent company ByteDance have agreed to pay US$400 million ($559 million) to settle a lawsuit with the US Department of Justice over claims that the video-sharing platform violated federal children’s privacy laws.

“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 on Friday.

It is “one of the largest recoveries ever obtained” from a case involving the Children’s Online Privacy Protection Act (COPPA), the statement continued.

COPPA bars websites from gathering the personal information of children younger than 13 without parental permission. 

The Justice Department and Federal Trade Commission jointly sued TikTok in 2024, alleging it had placed the safety of millions of children in jeopardy by collecting their personal data without parental permission.

They said TikTok allowed children to use the app, and it collected and used personal data from young users without informing their parents.

Even accounts created in a “Kids Mode” intended for users younger than 13 gathered email addresses and other personal information, the suit said.

In 2019, the US government filed a COPPA lawsuit against an app called Musical.ly, which ByteDance bought in 2017 and then merged into TikTok.

TikTok did not immediately respond to a request for comment.

According to a report by America’s ABC News in May, the Trump administration was considering using the funds for ongoing “beautification” projects, which have included resurfacing the Lincoln Memorial Reflecting Pool, renovating the White House ballroom and building an arch.

It was not immediately clear what the settlement funds would be used for.

Global crackdown

The US settlement comes amid a growing global crackdown on the video app.

Brussels launched a probe into TikTok in 2024 under the Digital Services Act (DSA) — a content law and major weapon in the EU’s boosted legal armory that it has deployed to rein in big tech in recent years.

In July, the European Union accused TikTok of failing to protect children from cyberbullying and predatory behaviour, putting the company at risk of a large fine.

The EU said minors’ accounts should only be visible to those they have given permission to. Children aged 13 and over can use TikTok.

“A high level of protection should not be an opt-in; it should be the default,” EU tech chief Henna Virkkunen said in a statement at that time.

Under the DSA, children’s account settings have, by default, the strongest safety and security protections.

“TikTok’s account settings fail to meet this standard, as they expose minors’ accounts and content too widely,” the EU said in its preliminary view.

Britain’s communications regulator, Ofcom, also launched an investigation into TikTok in July.

The UK probe will look into whether TikTok is doing enough under UK law to protect children from harmful content.

“This investigation will seek to establish whether there are reasonable grounds to believe that TikTok has failed, or is failing, to comply with its legal obligations,” Ofcom said in a statement.

It added that it would, in particular, look at TikTok’s age-verification model.

In December 2025, Australia took a more radical approach by prohibiting children under 16 from using social media platforms. 

The Australian government said this was prompted by increasing concerns about the effects of cyberbullying, sexual exploitation and self-harm content on the mental and physical wellbeing of children. 

Under the new law, 10 of the biggest social media platforms could face fines of up to $50 million if they do not take “reasonable steps” to block Australian-based users younger than 16.

Since then, countries including the UK, Canada and Indonesia have announced similar plans. 

The EU last month said it would also develop a policy for social media age restrictions in the 27-member bloc. 

But the US, which is home to the companies that run the platforms, remains a hold-out. The legislation governing social media in the US is piecemeal and varies from state to state.

A bill for a national ban on under-13s using social media was introduced to the US Congress last June. It has backers on both sides of politics, but has so far failed to progress and may never go to a vote.

Instead, the House of Representatives last month passed an alternative law that would require platforms to “limit design features that encourage compulsive usage” and give parents some controls over their children’s accounts.

But it is not clear if the bill will pass the Senate. Many advocates view it as too weak, and some fear it will stymie tougher state-based action. 

The attorneys-general from 44 US states and territories have written to Congress to oppose the bill, saying it would “insulate big tech from appropriate oversight and accountability and imperil the young people it purports to protect”.