Judge George H. Wu in Los Angeles indicated he is likely to reject the portion of TikTok and ByteDance’s proposed $400 million settlement that would end a 2019 FTC consent decree tied to Musical.ly. The deal includes $300 million up front and $100 million contingent on termination of the decree. The FTC decree — imposed after Musical.ly failed to obtain parental consent for children's data collection — requires reporting and record-keeping through 2029. A hearing is scheduled for Monday to resolve the matter.
U.S. Judge Signals He Will Reject Part Of TikTok’s $400M Privacy Settlement
FILE PHOTO: The TikTok app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
TikTok and parent company ByteDance hit a legal snag when a U.S. federal judge signaled he is likely to reject the portion of a proposed $400 million settlement that would lift a 2019 Federal Trade Commission consent decree tied to Musical.ly, TikTok’s predecessor.
Court Response
U.S. District Judge George H. Wu in Los Angeles said the court cannot, without more detail, "determine that it constitutes a durable remedy or that termination is suitably tailored to the asserted change in circumstance." He indicated he was inclined to deny the request to terminate the consent decree and scheduled a hearing for Monday to consider the matter.
"Without further details, the court cannot determine that it constitutes a durable remedy..." — Judge George H. Wu
Settlement Terms
Under the proposed agreement with the U.S. Justice Department, TikTok would pay $300 million immediately and an additional $100 million only if a court approves ending the 2019 FTC consent decree. The settlement stems from a 2024 DOJ lawsuit alleging TikTok and ByteDance unlawfully collected children’s personal information.
Background: The 2019 FTC Action
In 2019 the Federal Trade Commission found that Musical.ly — later merged into TikTok — knew young children were using the app but failed to obtain parental consent before collecting names, email addresses and other personal data. Musical.ly paid a $5.7 million fine and the resulting consent decree imposes reporting and record-keeping obligations on the company through 2029.
Changes Cited by the Government
The Justice Department has told the court TikTok has changed significantly since the 2024 lawsuit, citing adjustments to ownership structure, management, compliance functions and privacy practices. In January, ByteDance agreed to form a majority American-owned joint venture intended to protect U.S. user data and avert a potential ban. TikTok’s U.S. unit says it requires all users to enter their date of birth and has developed advanced age-moderation systems to detect users under 13 who misrepresent their age.
TikTok and the Justice Department did not immediately respond to requests for comment. The scheduled hearing will clarify whether the court will permit termination of the FTC consent decree and under what conditions.
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