TikTok To Pay US$100 Million And Limit Daily Child Usage In First State Settlement
TikTok and its parent company ByteDance will pay Alabama at least US$100 million (about R1.63 billion) and introduce a two-hour daily usage limit for children and teenagers under a landmark settlement announced on Friday, 25 September 2026.
The agreement was reached shortly before a trial was due to begin in Alabama on Monday. It makes Alabama the first US state to reach this type of settlement with TikTok.
TikTok Introduces 2-Hour Daily Limit For Children
The settlement requires TikTok to introduce several restrictions for young users in Alabama.
Children will face a two-hour daily usage limit, while access will be restricted between midnight and 6am. TikTok will also introduce stronger age-verification measures and enhanced parental controls.
According to the Alabama Attorney General’s Office, the platform will also introduce “productive pauses” after 15, 60 and 90 minutes of continuous use.
Alabama Attorney General Steve Marshall said the settlement would give parents greater control over their children’s use of the platform.
“TikTok has agreed to give parents real control over what their kids see and how much time they spend on the app.”
Other measures include a ban on cosmetic filters for teenagers, a non-personalised content feed and restrictions on adult users discovering teenage accounts.
TikTok Settlement Could Reach US$300 Million
The initial US$100 million (about R1.63 billion) payment must be made to Alabama within 45 days. The amount could eventually rise to US$300 million (about R4.89 billion) if specified conditions involving other states are met.
The settlement resolves Alabama’s lawsuit, which was filed in April 2025. The state had alleged that TikTok misled consumers about its safety measures and exposed young users to harmful risks.
TikTok has not admitted wrongdoing as part of the settlement.
A company spokesperson said TikTok remained focused on improving protections for teenagers.
“TikTok’s priority has always been fostering a safe and positive space where people can be creative, discover what they love, and connect with their community.”
The new restrictions apply to users in Alabama. Other US states, including California and New York, still have cases involving TikTok.
The agreement also means the planned Alabama trial will not go ahead.
The settlement is therefore significant not because TikTok was fined by a court, but because the company agreed to pay the state and introduce specific safety measures before the case reached trial.
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