The Trump administration is reportedly close to finalizing a $400 million settlement with TikTok to resolve a federal lawsuit accusing the platform of violating children’s privacy laws.
The lawsuit, filed in 2024 during the Biden administration, alleged that TikTok and its parent company ByteDance collected personal data from children under 13 without parental consent, violating the Children’s Online Privacy Protection Act (COPPA).
Funds Could Support D.C. “Beautification” Projects
According to sources familiar with the discussions, the settlement money would help fund President Donald Trump’s Washington, D.C., “beautification” projects, including infrastructure upgrades and a proposed triumphal arch near Arlington National Cemetery.
The agreement reportedly would not require TikTok to admit wrongdoing and still needs approval from TikTok’s board.
Ethical Questions Raised
The proposed deal has sparked questions because settlement funds would reportedly support administration projects rather than directly compensate affected users.
The Justice Department previously accused TikTok of exposing millions of children to data collection, targeted ads and adult-oriented content.
TikTok has denied wrongdoing, saying it exceeded federal requirements and worked to prevent underage users from accessing the app.
TikTok’s U.S. Ownership Deal
The settlement discussions come after TikTok finalized a major U.S. restructuring deal earlier this year involving investors tied to Oracle and other American firms. The agreement allowed TikTok to continue operating in the U.S. amid ongoing national security concerns over its Chinese ownership.
For the latest on the TikTok ownership ordeal and possible effects on users, stay tuned to Que Onda Magazine.