TikTok has agreed to pay at least $100m to the US state of Alabama and introduce stricter controls for teenage users, avoiding a trial over allegations that it misled parents about measures designed to protect children from harmful content.

The settlement, described by Alabama as a “first-in-the-nation” agreement, was reached ahead of a trial that was scheduled to begin on Monday.

The state had accused TikTok of failing to adequately protect young users and misrepresenting the effectiveness of its safety tools.

Under the agreement, TikTok will introduce several restrictions similar to those contained in a recent settlement between Instagram owner Meta and US states.

Teenagers will face a two-hour daily limit on the platform, with access restricted between midnight and 6am, while notifications will be suspended during school hours.

TikTok will also strengthen age-verification measures, prohibit beauty filters for teenagers and provide young users with access to a non-personalised content feed.

Alabama Attorney General Steve Marshall described Friday’s settlement as “a great day for Alabama parents.”

He said, “Tonight, they can rest easier knowing real protections are in place to shield their children from the dangers of social media addiction.”

Under the agreement, TikTok will pay Alabama $100m and could pay up to $300m if 40 other attorneys general reach similar settlements with the company within a specified period.

The settlement is the latest in a growing wave of lawsuits against social media companies across the United States over allegations that their platforms harm young users.

In August, Meta agreed to pay $18bn to settle a wide-ranging lawsuit brought by US states, which accused the company of designing Instagram and Facebook to encourage addictive use among children.