TikTok to pay Alabama $100m, cap child usage at two hours daily

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TikTok and ByteDance will pay Alabama $100 million and impose a two-hour daily usage limit for children in the state under a lawsuit settlement reached just before a jury trial was set to begin Monday. The deal requires new safety features including overnight and school-hour restrictions, with the payment due within 45 days. TikTok faces up to $300 million in penalties if it fails to meet the settlement terms.
Key Facts
- TikTok and ByteDance will pay Alabama $100 million as part of the settlement, with payment due within 45 days.
- The settlement imposes a two-hour daily usage limit for children in Alabama, along with restrictions on overnight and school-hour use.
- TikTok has up to one year to implement age verification measures, while the time limits and usage blocks take effect immediately.
- TikTok agreed to pay up to $300 million to Alabama if it fails to meet the settlement conditions.
- The deal marks TikTok's first settlement with a US state and follows a framework set by Meta's August settlement with 52 state attorneys general.
Settlement Terms
TikTok and ByteDance will pay Alabama $100 million and make a series of changes to restrict usage by children in the state as part of a lawsuit settlement. The deal was reached just before a jury trial was set to begin on Monday, ending a lawsuit alleging TikTok is intentionally designed to addict children. TikTok is now required to install a number of new safety features, including a two-hour daily usage limit for children and restrictions on usage overnight and during school hours. The restrictions will only apply in Alabama, marking the platform's first settlement with a US state.
Safety Measures
The new time limits and usage blocks are poised to take effect immediately, while TikTok has up to a year to implement other changes such as age verification measures. Many of the measures follow a framework established by an August settlement struck between social media rival Meta and 52 state Attorneys General. Other safety features demanded as part of the deal include a host of measures to allow parents to heavily moderate usage by their children, along with restrictions on some content, and new ways to verify the age of young users. TikTok will also limit children's accounts being discovered by adults, and notify parents to any suspicious interactions between teen users and adult users. A blanket ban on all cosmetic filters for children will also be put in place.
Enforcement and Penalties
TikTok has agreed to pay up to $300 million to Alabama if conditions of the new settlement are not met. The $100 million payment is due to the state within 45 days. Katherine Robertson, chief counsel in the Alabama Attorney General's office, said the deal was the state's final offer and described it as very restrictive injunctive relief.