Washington: TikTok and parent company ByteDance will pay Alabama at least $100 million (£75.45 million) under a settlement that introduces new limits on children’s use of the platform in the state.
The settlement was reached shortly before a jury trial was due to begin on September 28. The case centred on allegations that TikTok was designed to keep children using the platform for long periods and that the company had misled consumers about its safety measures. The agreement marks TikTok’s first settlement with a US state.
Under the deal, children in Alabama will face a 2-hour daily usage limit. The platform will also restrict access overnight and during school hours. The new time limits and usage blocks are due to take effect immediately. Other measures will be introduced over a longer period.
TikTok will have up to a year to implement additional requirements. These include stronger age verification systems and expanded parental controls. Parents will gain more ways to manage their children’s use of the platform and restrict access to certain content. TikTok will also introduce measures to make children’s accounts less discoverable by adults.
The settlement also includes restrictions on interactions involving young users. Parents will receive notifications about suspicious interactions between teenage users and adults. TikTok will also introduce a blanket ban on cosmetic filters for children. The agreement includes further safety measures aimed at limiting potentially harmful use of the platform.
Alabama will receive the initial $100 million payment within 45 days. TikTok could face payments of up to $300 million if conditions linked to the settlement are not met. The agreement applies only to users in Alabama and follows a similar framework used in a settlement involving Meta and state Attorneys General.
The settlement comes as wider legal scrutiny of social media platforms over the impact of their products on young users. Alabama was preparing to become the first US state to take TikTok’s child safety claims before a jury. The agreement has ended that planned trial before proceedings could begin.
ByteDance remaines a part of the agreement because the Chinese company continues to hold a minority stake in TikTok’s US joint venture after a restructuring of the American business earlier this year. The Alabama deal follows a separate $400 million settlement announced by the US Justice Department in August over allegations involving children’s privacy laws.
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