TikTok settles Alabama’s teen safety lawsuit for at least $100 million, with up to $300 million if 40 more states sign on

by | Sep 26, 2026 | Latest E-commerce News & Updates

TikTok settled Alabama’s teen safety lawsuit for at least $100 million three days before jury selection, without admitting wrongdoing. Alabama had narrowed the case to deceptive trade practices claims, arguing TikTok misrepresented how well Restricted Mode and Kids Mode kept mature content away from young users. TikTok now has to cap teen use at two hours a day, block children from the app between midnight and 6 a.m., interrupt teens after 15 straight minutes of scrolling, and bar them from cosmetic filters. The agreement is TikTok’s first with a state, and it lifts Alabama’s payout to as much as $300 million if 40 more attorneys general sign similar deals within a set window.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: TikTok

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