TikTok has agreed to pay $400 million to resolve a U.S. Child privacy lawsuit. The settlement addresses allegations that the app violated the Children's Online Privacy Protection Act (COPPA) by failing to properly handle data from users under 13. The case also involved the Kids Mode feature, which was alleged to allow children to access content unsuitable for their age.

The lawsuit, filed by the Federal Trade Commission (FTC), claimed TikTok did not adequately verify the age of users or secure their personal information. The company will now pay the settlement instead of facing potential legal action. The FTC has previously warned social media platforms about COPPA compliance, emphasizing the need for stronger protections for minors.

The agreement highlights growing regulatory scrutiny of tech companies regarding data privacy. TikTok’s move comes amid increasing pressure to ensure child safety online. The settlement does not admit fault but aims to resolve the legal dispute and prevent further violations.

The case underscores the challenges platforms face in balancing user engagement with legal obligations. As more children use social media, enforcement of privacy laws becomes increasingly critical.