Alabama’s TikTok Settlement Includes Funds Tied to Other State Attorneys General
Alabama reached a $100 million settlement with TikTok to address claims that its features were 'addictive,' including a two-hour daily limit for underage users, parental controls, and restrictions on unlimited scrolling, overnight access, and beauty filters.
The agreement establishes multiple funds: $14.2 million for attorney fees and litigation expenses, and $100 million designated for compensatory restitution and remediation under Section 162(f)(2) of the Internal Revenue Code, to be used at the Attorney General’s discretion.
A second fund of $183.8 million is tied to tiers of state participation, with payouts unlocking only if ten, twenty, thirty, or forty state attorneys general execute qualifying agreements within specified timeframes. The structure does not involve TikTok paying directly to other AGs or creating an affiliate program.
Quelle: Techdirt ↗