TikTok to pay Alabama US$100mil under pre-trial settlement

TikTok has reached a pre-trial settlement with Alabama, agreeing to pay the state at least $100 million under the terms of the agreement. The settlement, announced by the office of Alabama Attorney General Steve Marshall, requires the social media giant to implement various safety measures for teenage users. Among the stipulations are two-hour daily time limits and restrictions on access between midnight and 6 a.m. The settlement could potentially triple to $300 million if certain conditions are met.

The lawsuit, initially filed in April 2025, accused TikTok of engineering the app to addict young users, similar to a gambling machine. Alabama had narrowed its case to claims under the state's Deceptive Trade Practices Act, focusing on TikTok's representations of Restricted Mode and Kids Mode. Testing revealed that even with Restricted Mode enabled, users were exposed to content about suicide, self-harm, eating disorders, alcohol, and sex.

TikTok also faced accusations of falsely advertising the platform's suitability for children aged 12 and up, containing only mild or infrequent mature content.

Though TikTok maintains its commitment to creating a safe and positive space for users to create, discover, and connect, the settlement marks a significant victory for Alabama in the ongoing wave of litigation targeting social media companies for alleged harm to young users.