TikTok has agreed to pay Alabama a minimum of $100 million to settle the state's social media addiction lawsuit, which alleged the app was deliberately designed to keep teens and kids addicted. The settlement, which avoids a trial scheduled for next week, marks TikTok's first deal with a state over such claims. Alabama sued TikTok and its developer, ByteDance, last year, joining over a dozen other states that filed similar lawsuits in 2024.

As part of the agreement, TikTok will implement safety measures including a two-hour daily time limit for underage users, enhanced parental controls, restrictions on unlimited scrolling and overnight access, a ban on beauty filters for younger users, and a non-personalized content feed. Failure to comply could result in penalties up to $300 million. The settlement follows TikTok's August agreement to pay $400 million to the U.S. Department of Justice to resolve children's privacy law violations.

These actions come after TikTok established a U.S. entity in January, transferring control to non-Chinese investors amid ongoing regulatory scrutiny.