TikTok settles for over $100 million in mental health lawsuit, Alabama AG says

The state of Alabama has reached a settlement with TikTok and its parent company, ByteDance, over allegations that the platform is addictive and misleads consumers about its safety. According to the Alabama Attorney General's Office, TikTok will pay a minimum of $100 million to the state, with the potential to increase to $300 million if certain conditions are met.

The settlement comes days before a trial was set to begin in Montgomery state court, where Alabama had alleged that TikTok made the platform addictive and misled consumers about its safety. As part of the agreement, TikTok has also agreed to make changes to its platform, including implementing a two-hour daily time limit, pauses after 15 minutes of use, and improved checks on users' ages, The Business Times reports.

The settlement is TikTok's first with a state, and comes as the company faces similar claims nationwide. At least 27 other states and Washington, D.C. have also sued TikTok. According to The Hill, TikTok has 45 days to respond to the settlement.

Brief written by urgent.news from The Hill, The Business Times - Companies & Markets — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.