Alabama to receive $100M or more from TikTok under settlement

TikTok has agreed to pay Alabama a minimum of $100 million and implement new safety measures for teen users to settle a lawsuit. The settlement was announced on September 25, 2026, just before the case was set to go to trial.

The Case

Alabama sued TikTok and its Chinese parent company ByteDance in April 2025. The state claimed the app was built to be addictive, "just like a sophisticated gambling machine," and that it misled users about safety. The state also said its investigators set up TikTok accounts posing as 13-, 14-, and 15-year-olds. Even with "Restricted Mode" turned on, the accounts were quickly shown videos about suicide, self-harm, eating disorders, alcohol, and sex.

Settlement Terms

Payment: Alabama will receive $100 million within 45 days. The state could get up to $300 million total if other states reach similar deals with TikTok.

Time Limits: Teens will have a two-hour daily limit, with parents able to set shorter limits. "Productive pauses" will interrupt users after 15, 60, and 90 minutes of continuous use.

Overnight and School Restrictions: Teen access will be blocked from midnight to 6 a.m. Messaging and push notifications will also be limited overnight and during school hours.

Other Measures: Age checks will be stronger. Teen accounts will be private by default and harder for adults to find. Parents will be alerted to suspicious interactions between their teens and adult users. Cosmetic filters will be banned for teens. Teens will get a default non-personalized feed.

TikTok's Response

A TikTok spokesperson said the company's priority has always been "fostering a safe and positive space" and that the settlement builds on its work to protect teens.

What's Next

More than a dozen other states, including California and New York, still have active lawsuits against TikTok. The settlement with Alabama marks TikTok's first with a U.S. state over child safety claims.