TikTok to Pay $100 Million and Limit Children's Usage in Alabama Settlement
The social media giant reached an agreement hours before a trial was set to begin over allegations of intentionally designing its platform to addict young users.
TikTok and its parent company, ByteDance, have agreed to pay Alabama $100 million and implement new safety features to restrict children's usage of the app, settling a lawsuit filed by the state. The agreement was reached just before a jury trial was scheduled to commence, addressing allegations that TikTok is intentionally designed to foster addiction in young users.
The settlement mandates the introduction of several new safety measures, including a daily usage limit of two hours for children and restrictions on use during overnight hours and school periods. These new limitations will apply exclusively to users in Alabama and mark TikTok's first settlement of its kind with a U.S. state.
"This is very restrictive injunctive relief that's going to require them to change a lot of the policies that we had identified as the culprits in what we call the war on childhood," Katherine Robertson, chief counsel in the Alabama Attorney General's office, told BBC News. She added that the state's final offer was accepted by TikTok after mediation.
The time limits and usage blocks are set to become effective immediately. However, TikTok has up to a year to implement other stipulated changes, such as establishing age verification measures. Many of these requirements align with a framework established in a previous August settlement between Meta, a social media rival, and 52 state Attorneys General.
Under the terms of the agreement, TikTok could be required to pay an additional $300 million to Alabama if the conditions of the new settlement are not met. The initial $100 million payment is due to the state within 45 days.
Additional safety features stipulated in the deal include enhanced parental controls for moderating children's usage, restrictions on certain content, and new methods for verifying the ages of young users. The platform will also limit the discoverability of children's accounts by adults and notify parents of any "suspicious interactions" between teen and adult users. A complete ban on cosmetic filters for children will also be put in place.
"TikTok's priority has always been fostering a safe and positive space where people can be creative, discover what they love, and connect with their community," a spokesperson for TikTok USDS stated. "This builds on our commitment and core objective to continually enhance our robust safety tools to protect teens."
Earlier this year, TikTok restructured its business ownership, with a new investor group taking control of U.S. operations. ByteDance, TikTok's parent company, remains a minority owner of the U.S. joint venture and was included in the settlement.