TikTok and its parent company ByteDance have agreed to pay Alabama $100 million and introduce new child safety measures as part of a major legal settlement. The agreement ends a lawsuit that accused the popular social media platform of designing features that encourage excessive use by children.
The settlement was reached shortly before a jury trial was scheduled to begin. State officials said the deal represents a significant step toward increasing protections for young users on social media platforms.
Under the agreement, TikTok must introduce several new restrictions for children in Alabama. One of the most notable changes is a two-hour daily usage limit for young users. The platform will also introduce restrictions during overnight hours and school hours.
State officials said these measures are intended to reduce excessive screen time and help families better manage children’s online activity.
The new time limits and usage restrictions are expected to take effect immediately. Other requirements, including enhanced age verification systems, must be implemented within the next year.
Alabama officials described the settlement as one of the strongest actions taken by a state against a social media company over concerns about children’s online safety.
Katherine Robertson, chief counsel in the Alabama Attorney General’s Office, said state officials were satisfied with the outcome after extensive negotiations.
According to Robertson, the state and TikTok participated in mediation discussions before reaching the final agreement. She said the settlement requires the company to make substantial policy changes that officials believe will better protect children.
The agreement includes financial penalties if TikTok fails to meet its obligations. Under the terms of the settlement, the company could face payments of up to $300 million if it does not comply with the required changes.
The initial $100 million payment must be made to Alabama within 45 days.
Beyond time restrictions, TikTok has agreed to expand parental control options. Parents will receive more tools to monitor and manage how their children use the platform.
The settlement also includes new safeguards aimed at limiting unwanted interactions between adults and teenagers. Children’s accounts will be harder for unknown adults to discover, and parents will receive notifications if potentially suspicious interactions occur between adult users and teenagers.
Another major change involves cosmetic filters. The agreement requires TikTok to prohibit all cosmetic filters for child users in Alabama. State officials believe the measure could help reduce concerns related to body image and online appearance pressures among younger audiences.
Age verification is another important part of the settlement. TikTok must develop stronger systems to confirm the ages of users and prevent children from accessing features that may not be appropriate for them.
Several elements of the agreement follow standards established in a separate settlement involving another major social media company and dozens of state attorneys general. Regulators have increasingly focused on online safety and the effects of social media on children and teenagers.
TikTok said protecting young users remains a priority for the company. A spokesperson stated that the platform aims to provide a safe and positive environment where users can be creative, connect with others and explore their interests.
The company added that the new agreement builds on existing efforts to strengthen safety tools for teenagers and families.
The settlement is particularly significant because it is the first agreement of its kind between TikTok and a U.S. state. Legal experts say it could influence future discussions about social media regulation and child safety across the country.
Earlier this year, TikTok restructured its ownership in the United States, with a new group of investors taking control of American operations. Even after that change, ByteDance remains a minority owner and was included in the Alabama settlement.
The agreement closes a major legal dispute while creating new rules for young users in Alabama. As social media platforms continue facing scrutiny over child safety, the settlement may serve as an important example of how states and technology companies address growing concerns about online behavior and digital well-being.
