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Home›Global Markets›North America›TikTok agrees to safety and usage limits in Alabama se…

TikTok agrees to safety and usage limits in Alabama settlement

The deal requires a two-hour daily cap for teenagers, pauses after 15 minutes, and includes at least US$100 million in payments, with potential expansion up to US$300 million.

Alabama announced a settlement with TikTok and its Chinese parent company, ByteDance, setting new usage limits and enhanced age-verification steps for users in the state, Reuters reports. The agreement resolves claims that the platform endangered children and misled consumers about its safety.

Under the settlement, TikTok must implement changes for teenagers in Alabama, including a two-hour daily time limit, a pause after 15 minutes of use, and stricter age checks.

The settlement also includes a payment of at least US$100 million from TikTok to Alabama, according to the agreement. The payout could rise to US$300 million if 40 other attorneys general sign on to similar agreements with the company within a specified time frame.

The deal was reached days before a scheduled trial, Reuters adds, as the parties finalized the terms.

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