A newly unredacted lawsuit filed by Utah Attorney General Sean Reyes alleges that TikTok allowed and profited from the exploitation of children on its livestreaming platform, TikTok Live. The complaint accuses the platform of being aware of the issue and benefiting financially through its virtual gifting system.
The lawsuit, which follows a 2023 suit over TikTok’s addictive design, claims the platform enabled minors to host livestreams that exposed them to harmful interactions with adults. TikTok’s response to the allegations highlights measures it says it has implemented to ensure safety but dismisses the suit as misleading.
TikTok’s Internal Investigations Reveal Startling Findings
According to the lawsuit, TikTok launched two internal investigations, “Project Meramec” and “Project Jupiter,” to evaluate concerns raised by external scrutiny. These investigations revealed troubling issues.
- Project Meramec: This internal review discovered that “hundreds of thousands of children” bypassed TikTok’s age restrictions, hosting and participating in livestreams where they interacted with adults. The lawsuit claims that TikTok’s algorithm favored livestreams where virtual gifts were exchanged, amplifying the reach of some exploitative streams.
- Project Jupiter: This probe explored whether TikTok Live’s gifting feature was being misused for money laundering. The investigation found evidence that criminals were leveraging the platform to sell drugs and conduct fraud during livestreams.
Both findings paint a disturbing picture of how TikTok Live was allegedly used for exploitative and illegal activities, with the company profiting from virtual gift transactions.
Virtual Gifting System Under Fire
The lawsuit specifically targets TikTok’s virtual gifting system, accusing the platform of profiting from inappropriate and illegal behavior. Digital gifts, purchased with real money, are often exchanged in livestreams as a form of interaction or appreciation.
The complaint claims that TikTok took a portion of these transactions, even in cases involving “nudity and sexual activity” during livestreams. It argues that the algorithm, which promotes streams with high engagement, inadvertently amplified harmful content.
TikTok responded to these allegations, asserting that the lawsuit relies on outdated information and ignores safety measures. The platform highlights features such as Family Pairing tools and strict livestreaming requirements, stating these demonstrate its commitment to community safety.
TikTok’s Child Safety Track Record Questioned
This lawsuit is not the first time TikTok has faced criticism over child safety. The Federal Trade Commission (FTC) previously investigated the app for violations of child privacy laws. In addition, concerns over TikTok’s potential to influence children were part of the rationale for a ban now under appeal in the Supreme Court.
Utah’s lawsuit emphasizes that TikTok’s failure to prevent underage access to livestreams, coupled with its financial gains from virtual gifts, represents a significant lapse in protecting children. Critics argue that the platform’s measures have been insufficient to curb these risks.
Broader Implications for TikTok
The allegations add to a growing list of legal and public relations challenges for TikTok. With its massive user base and intricate algorithm, the platform continues to face scrutiny from governments and advocacy groups worldwide.
The following issues highlight the stakes for TikTok:
- Child Exploitation: The core of Utah’s lawsuit revolves around the company’s alleged role in enabling harmful interactions between children and adults.
- Money Laundering: The misuse of TikTok Live for criminal activities, as uncovered by Project Jupiter, raises questions about the platform’s safeguards.
- Algorithm Accountability: The lawsuit highlights the influence of TikTok’s algorithm in promoting streams with high engagement, sometimes with harmful consequences.
TikTok’s public response underscores its frustration with the lawsuit, framing the accusations as cherry-picked and distorted. However, the controversy amplifies calls for stricter oversight of tech companies and their responsibilities toward user safety.
