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TikTok and the Trump administration are reportedly close to reaching a $400 million settlement tied to allegations that the popular video-sharing platform violated U.S. child privacy laws. According to ABC News, the agreement would resolve a lawsuit filed by the U.S. Department of Justice and the Federal Trade Commission against TikTok and its Chinese parent company, ByteDance.
The lawsuit accused TikTok of failing to protect the privacy of children under the age of 13 by illegally collecting and storing personal information without parental consent. U.S. officials claimed that millions of minors used standard TikTok accounts for years, allowing the platform to gather data in violation of the Children’s Online Privacy Protection Act (COPPA).
The Justice Department alleged that TikTok knowingly allowed children to create regular accounts, upload videos, and communicate with other users while collecting sensitive information from those accounts. Regulators said the company did not take adequate measures to obtain parental permission before collecting data from young users.
ABC News also reported that settlement funds could potentially support President Donald Trump’s Washington, D.C. “beautification” initiatives. Sources familiar with the discussions said officials debated whether the money could legally help finance projects such as a proposed 250-foot triumphal arch near Arlington National Cemetery. Trump has reportedly requested $10 billion from Congress for infrastructure and redevelopment projects in the capital region.
Neither the White House nor the Justice Department provided detailed comments on the reported settlement discussions. TikTok also declined to publicly respond.
The legal battle comes as ByteDance continues efforts to strengthen TikTok’s U.S. operations. Earlier this year, the company finalized a majority American-owned joint venture aimed at securing U.S. user data and preventing a nationwide TikTok ban. The app currently has more than 200 million users across the United States.
