TikTok Settles Alabama Suit for $100M, Restricts Teens

TikTok has agreed to a significant settlement with Alabama, resolving claims that the platform misled parents about its child safety features. The company will pay at least $100 million to Alabama, with the potential for up to $300 million if other states join similar agreements. This deal was modeled after a prior settlement between Meta, the parent company of Instagram and Facebook, and numerous US states.

The agreement mandates new restrictions for teen users, including a daily time limit of two hours and a lockout from midnight to 6 a.m. Notifications will also be suspended during school hours, and age verification processes will be strengthened. Beauty filters will be banned for teenagers, and a non-personalized content feed option will be available.

Alabama Attorney General Steve Marshall hailed the settlement as a victory for parents, emphasizing the protections now in place against social media addiction. The lawsuit, originally filed in April 2025, accused TikTok of designing its app to be addictive and misleading users about its safety features like "Restricted Mode."

This settlement is part of a broader wave of litigation targeting social media companies over their impact on young users. While TikTok opted for a settlement, Meta has faced significant financial penalties in court, including a $375 million jury award in New Mexico and a $6 million award in a Los Angeles case concerning social media addiction. More than a dozen other states, including California and New York, still have ongoing lawsuits against TikTok.