The platform resolved claims that it intentionally addicted young users, averting a trial set for next week.
TikTok has agreed to pay Alabama at least $100 million to settle claims that the app was intentionally designed to get children and teenagers addicted, averting a trial scheduled for next week.
The deal is TikTok’s first settlement with a state over social media addiction, according to Reuters. Alabama sued the video app and its Chinese owner, ByteDance, last year. More than a dozen other states also brought lawsuits against TikTok in 2024 over similar addiction allegations.
Under the terms of the settlement, TikTok must roll out several safety restrictions for younger audiences. The app will add a two-hour daily limit for underage users, along with parental tools that let guardians shorten that window even more. TikTok will also curb overnight usage, place limits on unlimited scrolling, prohibit beauty filters, and provide feeds without personalized content recommendations. If the company fails to put the required changes in place, the settlement total could climb to as high as $300 million.
According to The New York Times, the policy updates resemble concessions Meta agreed to when it settled addiction claims with 47 states for $18 billion.
The agreement follows a separate $400 million settlement TikTok reached with the Department of Justice in August over children’s privacy laws. The Justice Department said at the time that TikTok had altered its policies and ownership structure since the complaint was filed, including creating a U.S. business entity in January that placed control of the app under non-Chinese investors.
