TikTok and ByteDance avoided a trial that was set to begin on Monday by paying at least $100 million to the state of Alabama. The agreement is TikTok’s first deal with a U.S. state amid a wave of lawsuits accusing social media companies of harming young users and misleading consumers about safety measures.
The Alabama case was filed in 2025 against TikTok and its parent company. The state alleged that TikTok designed certain platform features to encourage longer use by young users and misled parents about the effectiveness of tools it provides to protect children from inappropriate content. Alabama then focused its case on claims brought under the state’s deceptive trade practices law.
Two-hour limit for teenagers
One of the most important terms of the agreement is a two-hour daily limit on TikTok use for teenagers in Alabama. Teen users will also encounter a break after 15 minutes of continuous use and will receive similar prompts again at 60- and 90-minute intervals.
Teen access to the platform will also be blocked from midnight until 6 a.m., and TikTok notifications will be stopped during school hours. Additionally, the company must implement more stringent age-verification processes.
Other terms of the agreement include banning beauty filters for teenagers and providing an unpersonalized content feed option for young users. This change allows teenagers to receive a feed different from the content the algorithm selects based on their behavior and interests.
The agreement also contains a conditional clause about the nighttime ban hours. If 40 other state attorneys general sign similar agreements with TikTok within a specified period, the nighttime restriction could shift to a longer window of 10 p.m. to 7 a.m.
Payment could rise to $300 million
Alabama has said TikTok will pay $100 million under the agreement. However, the amount the state receives could reach a total of $300 million if conditions specified in the deal are met and 40 other state attorneys general join similar agreements.
Steve Marshall, Alabama’s attorney general, described the agreement as an important step for the state’s parents and said the new measures create specific limits on teenagers’ use of TikTok.
In contrast, TikTok continues to deny the allegations that it designed the platform to harm teenagers. A spokesperson for the company’s U.S. operations said teen safety is a priority for TikTok and that the new agreement underscores the company’s commitment to strengthening safety tools for young users.
Similar cases continue
The agreement comes as TikTok faces similar cases in other U.S. states. According to recent reports, at least 27 states and Washington, D.C., have filed cases against the company, and litigation in states like California and New York continues.
These cases are part of a broader wave of lawsuits against social media companies focusing on the impact of platform design on underage users. In August, Meta also reached a sweeping settlement with U.S. states that included monetary payments and changes to how Facebook and Instagram operate for teenage users. Those changes included a two-hour daily limit and nighttime access blocks.
According to The Guardian, Alabama initially accused TikTok of providing misleading information about restrictions on teens’ access to sexual and violent content as well as the functioning of features like Restricted Mode and Kids Mode. The state also raised issues about claims regarding the Chinese government’s access to the data of American TikTok users.
In its defense, TikTok has cited safety measures and also invoked Section 230 of the federal Communications Decency Act, a law that shields online platforms from liability for user-generated content in certain circumstances. Nevertheless, the Alabama agreement - reached without taking the case to trial - is the first TikTok settlement with a state in this set of lawsuits.
The agreement could pave the way for similar restrictions in other states-especially if comparable cases are resolved through deals that change platform design and how teenagers use the services instead of full court proceedings.