Alabama said on Friday it had reached a settlement with TikTok and its Chinese parent company, ByteDance, that required the social media platform to impose new usage limits and enhanced age-verification measures for users in the US state, resolving claims that the platform endangered children and misled consumers about its safety.
The agreement, which came days before a scheduled trial, calls for TikTok to implement changes for teenagers in Alabama including a two-hour daily time limit, pauses after 15 minutes of use and stricter age checks.
TikTok will pay Alabama at least US$100 million under the settlement, but the state’s payout could grow to US$300 million if 40 other attorneys general sign on to similar agreements with the company within a specified time frame, according to the settlement.