US government nears $400M TikTok settlement over child privacy violations
What's the story
The US government is close to finalizing a $400 million settlement with TikTok, according to ABC News. The deal comes in response to an ongoing lawsuit that accuses the popular social media platform of violating child privacy laws. The lawsuit alleged that TikTok collected data from children without their parents' consent, thereby breaching privacy regulations.
Funding allocation
Settlement money may go to Trump's beautification projects
The settlement amount is likely to be used for President Donald Trump's beautification projects in Washington. However, there have been questions about the legality of using such settlement money for these purposes, as settlements are usually meant to compensate victims. Trump had previously requested $10 billion from Congress for a variety of initiatives in the District of Columbia area.
Legal allegations
Lawsuit accused TikTok of violating COPPA
In 2024, the US Department of Justice (DOJ) sued TikTok and its parent company, ByteDance, for allegedly failing to protect children's privacy on their platform. The US government claims that millions of American children under 13 have been using TikTok for years. It also alleges that the platform has been collecting and storing personal information from these children without parental consent, violating the Children's Online Privacy Protection Act (COPPA).
Company stance
'Unlawful massive-scale invasions of children's privacy'
The lawsuit, which was also supported by the Federal Trade Commission, aims to end what it calls "TikTok's unlawful massive-scale invasions of children's privacy." The DOJ alleges that TikTok knowingly allowed children to create regular accounts on its platform. This enabled them to create and share short-form videos and messages with adults and others without parental consent.