TikTok and its Chinese parent company ByteDance have reached a settlement with the US state of Alabama in a case involving claims of harm to teenagers. According to Channel NewsAsia, citing Reuters, the state alleged that the companies designed the platform to be addictive for children and misled consumers about its safety.
Payment to the state
Alabama's attorney general's office said on Friday that, under the terms of the agreement, the state will receive at least $100 million. The funds are to be paid to the state within 45 days.
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The payment amount could increase to $300 million if certain conditions are met, the state attorney general's office said.
First settlement with a state
The agreement with Alabama became TikTok's first settlement with a US state amid similar claims across the country. TikTok and ByteDance are contesting such allegations in various US states.
