KUALA LUMPUR – TikTok and Alabama Attorney General Steve Marshall have reached a settlement to resolve a lawsuit accusing the social media platform of using addictive design features that harm young users, Anadolu Ajansi reported, citing local media.
Under a consent decree issued by a Montgomery Circuit Court judge, TikTok will pay US$116 million (RM472.12 million) in restitution and establish a separate US$183 million (RM745.81 million) fund linked to whether other states enter similar agreements, according to the Alabama Reflector.
The settlement requires TikTok to restrict teenagers' access to the platform between midnight and 6am and set a default daily usage limit of two hours.
It also requires the platform to provide parents with tools to monitor and restrict their children's accounts.
TikTok did not admit wrongdoing as part of the settlement.
Alabama filed the lawsuit against TikTok in April 2025, alleging that its algorithm exposed children to harmful content related to drugs, self-harm and eating disorders while encouraging prolonged use of the platform for advertising purposes, the report said.
TikTok had sought to have the lawsuit dismissed, arguing that online platforms were protected by legal immunity and raising privacy law considerations.
Marshall described the settlement as a "great day" for families, saying TikTok would now be required to give parents greater oversight of their children's use of the app.
TikTok, meanwhile, said in a statement that the settlement "builds on our commitment and core objective to continually enhance our robust safety tools to protect teens." - September 26, 2026
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