TikTok to pay $100 million to Alabama in teen addiction settlement

Alabama has reached a $100 million settlement with TikTok and its Chinese parent company ByteDance, pending within 45 days, with a potential $300 million payout under specific conditions, according to the Alabama Attorney General’s office. The platform will implement changes such as a daily time limit of two hours, breaks after 15 minutes, and enhanced checks on users' ages.

The trial scheduled for Monday has been canceled, aiming to shed light on TikTok's operations. The lawsuit was filed last year by Republican Alabama Attorney General Steve Marshall, with 27 other states and Washington, D.C. also joining. TikTok maintains it prioritizes teen safety on its platform, citing Section 230 of the federal Communications Decency Act for immunity.

However, Alabama argued the algorithm encouraged users to consume increasingly intense content related to violence and self-harm, contributing to a mental health crisis and rising ER visits for self-harm among teens. The lawsuit accused TikTok of misleading users about the Chinese government's access to US user data and falsely claiming to limit sexual and violent content for young users to secure a teen-safe app rating from Google, Apple, and Microsoft.