On Friday, Alabama announced it had come to an agreement with TikTok and its parent company, ByteDance, just days before a planned trial regarding accusations that the app is addictive and misleads users about its safety. This marks TikTok’s first settlement with a state amidst similar lawsuits across the country.
As part of the settlement, Alabama will receive at least $100 million within 45 days, with the possibility of getting up to $300 million if certain terms are fulfilled, according to the Alabama Attorney General’s office.
TikTok has also committed to altering its platform, which includes introducing a daily limit of two hours, requiring breaks after 15 minutes, and enhancing age verification measures for users.
Representatives for TikTok did not provide immediate feedback on the agreement.
The trial was set to begin on Monday in Montgomery state court, originally expected to last between two and three weeks. It was anticipated to offer a rare glimpse into TikTok, as the company has previously settled cases designated for trial and has tried to keep specific operational details confidential.
This lawsuit was initiated last year by Alabama Attorney General Steve Marshall, a Republican. Additionally, at least 27 other states and Washington, DC, have also initiated similar legal actions.
TikTok maintains that its platform was developed with a focus on teen safety and contends that the federal Communications Decency Act’s Section 230 protects online platforms from responsibility for content generated by users.
Alabama’s lawsuit highlighted that TikTok’s constant stream of videos renders it the most addictive social media app, claiming that its algorithm leads young users towards increasingly disturbing content involving violence and self-harm. This, according to the state, has exacerbated a mental health crisis among teenagers, resulting in a significant rise in emergency room visits for self-harm-related issues.
The suit alleged that TikTok misrepresented its measures to restrict access to explicit and violent content for younger audiences to achieve a safe rating in app stores managed by Google, Apple, and Microsoft, and it also reportedly misled users concerning the Chinese government’s access to the data of US users.
The state sought penalties and other kinds of relief from TikTok in the lawsuit.
