TikTok settles lawsuit with Alabama for at least $100 million, will implement safety features
The deal adds two-hour daily limits, overnight curfews and stronger age checks after Alabama alleged TikTok’s design harmed teens’ mental health.
- On Friday, Alabama reached a settlement with TikTok and ByteDance requiring the platform to impose new usage limits, including two-hour daily caps and pauses after 15 minutes of use for state residents.
- Alabama Attorney General Steve Marshall sued the company last year, alleging the app was engineered to hook young users 'just like a sophisticated gambling machine,' with the state claiming self-harm emergency room visits had to 'skyrocket.'
- Focusing on the effectiveness of 'Restricted Mode' and 'Kids Mode,' Alabama's investigation involved setting up accounts as users aged 13, 14 and 15 to demonstrate that TikTok served harmful content despite these safety features.
- TikTok will pay Alabama at least $100m under the settlement, with potential growth to $300m if 40 other attorneys general sign on similar agreements. The company has now settled all cases selected for trial.
- This settlement follows a $17.1bn Meta settlement reached last month with 47 states. TikTok argues the Federal Communications Decency Act shields it from liability, yet the company has now resolved its most immediate legal threats.
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The U.S. state of Alabama accuses Tiktok that the short video platform is specifically addicting children. In order to avoid a trial, Tiktok now agrees to a comparison and stricter rules for the use of minors.
The Daily Hodl
Cryptocurrency News | Cryptocurrency Prices | Market CapTikTok Pays Alabama $100,000,000 in First State Settlement Over Child Addiction Claims
TikTok agreed to pay Alabama at least $100 million, and up to $300 million, to settle claims it designed addictive features that harmed young users. The deal requires new time limits and parental controls for teens in the state.
Fox BusinessThe New York LedgerAlabama teens getting their own version of TikTok under sweeping $100M deal
TikTok must disable its "For You" page for minors and enforce two-hour daily screen time limits under a landmark $100 million Alabama settlement.
Bulletin-Review
TikTok reaches first state settlement over teen safety claims
An Alabama jury will hear the state's claims starting Monday that TikTok and its Chinese parent company ByteDance made the platform addictive to young users and misled consumers about its safety.
In Alabama, the platform has agreed to pay at least $100 million to the US state and will impose a two-hour daily limit on young users in order to avoid a lawsuit.
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