TikTok has reached a settlement with Alabama over allegations that the social media platform harms children, with the state's Attorney General Steve Marshall announcing the agreement on Friday. The settlement averts a trial scheduled to begin Monday and requires an initial payment of at least $100m within 45 days.

The total compensation could climb to $300m depending on whether other states achieve qualifying settlements with TikTok during a specified timeframe, according to the Associated Press.

Mandatory Changes to the Platform

Under the settlement terms, TikTok must implement substantial modifications to how teen users interact with the platform. These changes apply specifically to teenagers in Alabama and include several new restrictions designed to curb excessive usage.

  • A maximum of two hours daily usage with parental oversight capabilities
  • Mandatory breaks after 15, 60 and 90 minutes of uninterrupted activity
  • Access blocked between midnight and 6am
  • Restricted usage during school hours
  • Age verification mechanisms
  • Enhanced safeguards limiting interactions between adult and teen accounts
  • Removal of cosmetic filters available to teen users
  • A default feed that does not employ personalisation algorithms

Background of the Case

Alabama initiated legal action against TikTok in 2025, contending that the company deliberately engineered its platform to foster addiction, subjected young users to significant mental health risks and made false statements regarding the app's safety standards.

Tonight, they can rest easier knowing real protections are in place to shield their children from the dangers of social media addiction

Steve Marshall, Alabama Attorney General

Marshall's office characterised this agreement as a groundbreaking settlement. A representative for TikTok's American joint venture told the Associated Press that the company has consistently prioritised creating a secure and constructive environment for its audience.

Pattern of Settlements and Legal Challenges

The Alabama deal reflects TikTok's broader strategy of resolving disputes before cases proceed to trial. In August, the platform settled three separate teen-harm lawsuits that were scheduled for October proceedings. However, the company has not escaped all adverse legal outcomes. A judge in Texas recently determined that TikTok bore liability for making misleading claims to parents regarding child safety.

Meta, TikTok's primary competitor, agreed in August to pay as much as $16.68bn to resolve a youth safety lawsuit brought by 29 states.

Source: The Next Web