The settlement with state authorities was reached three days before the trial was set to begin.
TikTok has reached a settlement with Alabama authorities just before the trial, which was scheduled to begin on Sept. 28. Under the settlement, Alabama will receive at least $100 million from the company within 45 days, with the potential for the amount to increase to $300 million if certain conditions are met.
In addition, TikTok must implement a host of safety features designed to protect children using its platform. The agreement resolves Alabama’s claims that TikTok designed its platform with addictive features, knowingly exposed young users to serious mental harms, and intentionally misled the public about the safety of its platform, among other things.
“TikTok has agreed to give parents real control over what their kids see and how much time they spend on the app,”
Alabama Attorney General Steve Marshall said.
The platform will introduce a two-hour daily time limit for children, with parental controls allowing parents to further limit the amount of time their children spend on TikTok. After 15 minutes of continuous use, and again at 60 and 90 minutes, TikTok will introduce “productive pauses” designed to limit endless scrolling.
Children’s access to the app will be restricted from 12:00 a.m. to 6:00 a.m. Messaging and push notifications will also be restricted overnight and during school hours. The company will strengthen age assurance measures and content moderation, including limits on the discoverability of teen accounts by adults and parental notification of suspicious interactions between teen users and adults.
The platform will also introduce a default non-personalized feed for teen users and a blanket prohibition on the use of cosmetic filters by teens. TikTok must also strengthen and improve its parental controls.
This is a first-in-the-nation settlement between a US state and TikTok resolving a case that was scheduled to go to trial. Alabama would have been the first state to bring its claims against TikTok to trial.
The settlement marks the latest step in Alabama authorities’ efforts to hold technology companies accountable for putting consumers, particularly children, at risk. In August, Steve Marshall announced a settlement with Meta* over similar claims that will bring $117 million to Alabama. Alabama authorities previously reached a settlement with online gaming platform Roblox requiring stronger protections for children and securing $12 million in funding for School Resource Officers.
*banned and designated as extremist in Russia
Source: MLex
