US State Sues TikTok Over Allegations Of Child Exploitation Via Live Feature

The state of Utah has filed a lawsuit against TikTok, accusing the platform's popular feature, TikTok Live, of facilitating the sexual exploitation of minors. The lawsuit, supported by a detailed Forbes investigation, describes TikTok Live as a "virtual strip club" and "a murky milieu of sexual exploitation." The lawsuit highlights alarming instances where minors perform inappropriate acts in exchange for virtual gifts that can be converted into real money, bringing up concerns about the safety of children on social media platforms and questioning TikTok's measures to protect young users.

Background of the Lawsuit

Utah's Attorney General, Sean D. Reyes, along with the state's Division of Consumer Protection, has brought this lawsuit under the Utah Consumer Sales Practices Act. The lawsuit asserts that TikTok's virtual economy, which allows users to exchange money with little oversight, has created an environment ripe for exploitation and illegal activities. This is the second lawsuit Utah has filed against TikTok, the first being in October 2023, over the app's addictive algorithm and its impact on young users.

The lawsuit claims that TikTok's in-app economy, which has already processed billions of dollars in transactions, has spawned a troubling culture of exploitation and illegal conduct. Despite TikTok's ownership of the platform, there is reportedly minimal regulation of these transactions. 

Details of Exploitation

The lawsuit draws heavily from Forbes' investigative piece, "How TikTok Live Became ‘A Strip Club Filled With 15-Year-Olds’." The investigation revealed numerous disturbing instances where minors engaged in sexually suggestive acts during live broadcasts, often in exchange for virtual gifts that could be converted into cash. In one instance, a 14-year-old girl was asked to perform for money, with viewers offering to send money via Cash App for explicit acts. In another case, a teenager was encouraged to cut off her clothing in front of thousands of viewers, incentivized by promises of TikTok coins.

Key Findings from Forbes' Investigation

1. Exploitation in Real-Time: The Forbes investigation uncovered that minors are often performing in sexually explicit ways on TikTok Live, responding to real-time requests from viewers who offer virtual gifts. These gifts, though seemingly innocuous, like flowers or ice cream cones, can be converted into real money.

2. Grooming and Predatory Behavior: The virtual gifts sent by adult viewers to minors can potentially be used as tools for grooming. Legal and law enforcement experts warn that this dynamic facilitates the grooming of young users for further exploitation, both online and offline.

3. Inadequate Oversight and Regulation: The lawsuit alleges that TikTok has not registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which means that transactions on the platform avoid regulatory scrutiny intended to prevent activities like sexual exploitation and money laundering.

The lawsuit also points to TikTok's moderation policies as inadequate. Despite the platform's efforts to monitor and control content, the sheer volume of live streams makes it challenging to effectively police all interactions. 

TikTok's Response and Public Criticism

In response to the lawsuit, TikTok spokesperson Michael Hughes stated that the company has "industry-leading policies and measures" to protect teenagers, including age restrictions for using TikTok Live. However, the Utah complaint contends that these measures are ineffective and that many underage users continue to participate in live events. The lawsuit further alleges that TikTok's public statements about their safety measures do not align with the internal documents reviewed by the AG's office.

Contradictions in TikTok's Safety Claims

• Age Restrictions: TikTok claims that users must be at least 18 years old to go live, but the lawsuit argues that these restrictions are easily bypassed and not effectively enforced.
• Policy Ineffectiveness: Internal documents suggest that TikTok is aware of the exploitation but has not taken sufficient action to mitigate these risks, prioritising profit over safety.

National and Legal Implications

This lawsuit comes at a time when TikTok faces increasing scrutiny in the United States. President Joe Biden has signed legislation that could ban the app nationwide due to national security concerns unless ByteDance, TikTok's China-based parent company, sells the platform to an American owner. Additionally, TikTok has faced previous legal challenges, including a settlement with the Federal Trade Commission over children's privacy violations.