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TikTok hurts kids in $16 billion fraud - US alleges

#343: TikTok lies about protecting kids and “engages in repeated and persistent fraud” according to bombshell case brought by 14 US States...
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TikTok has lied about protecting kids and “engaged in repeated and persistent fraud” to build a US$16 billion illegal empire in America, 14 US States have alleged.

The bombshell case accuses the Chinese platform, which is currently under a stay of execution in the US, of lying about privacy, targeting kids, and hiding the damage.

TikTok had appealed to a judge to dismiss the case, but that’s just been overturned, opening the way for it to now go to court.

Here, privacy lawyer

and I discuss what this means for social, kids’ safety, privacy, and how it ups the pressure for a repeal of Section 230.


This is the latest episode from the fast-growing Future Media podcast stable. You can tune in here or on Spotify, Apple, Art19, or wherever you get your pods.

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The largest challenge yet to the Bytedance-owned social platform is being brought by Republican and Democrat AGs from across America.

New York Attorney General Letitia James, who’s leading it, said: “TikTok challenges have put kids in harm’s way, and countless others are struggling with anxiety and depression because of TikTok’s addictive features.

“The youth mental health crisis is hurting families nationwide and we will continue our efforts to hold TikTok accountable and protect our young people.”

TikTok has countered that it has tools that limit screen time and argues it provides a kid-friendly environment, but that was dismissed by the judge and the States.

The court papers pull no punhces, saying TikTok lies and “has engaged in repeated and persistent fraud” to build its user base and US$16 billion ad business.

Harm allegations and court cases are now racking up again TikTok. And Facebook-owner Meta faces a similar suit brought by 41 States later this year.

The TikTok suit runs to 80 pages and comes as New York’s Department of Health and Mental Hygiene has designated social media as a public health hazard.

The US Surgeon General recently warned: “You have some of the best designers and product developers in the world who have designed these products to make sure people are maximizing the amount of time they spend on these platforms.

“And if we tell a child, use the force of your willpower to control how much time you’re spending, you’re pitting a child against the world’s greatest product designers.”

The States’ suit also surfaces damning emails from TikTok’s founders, including this doozy.

TikTok, the AGs allege, “is not reasonably safe and was designed to be addictive to young users, who are vulnerable and susceptible to harm.

“Depression, anxiety, eating disorders, and suicidal ideation have all reached record levels among children in New York and elsewhere.

“Over the past 15 years, New York has seen a steady increase from 27 per cent to 38 per cent of high school students who report feeling sad or hopeless.

“Suicidal thoughts rose from 12 per cent to 16 per cent.

“Studies show that half of US teens use the TikTok app several times a day and some use it almost constantly. Thirteen per cent say they wouldn’t want to live without it.”

It also claims it can prove that 35 per cent of TikTok’s US ad revenue is derived from children and teenagers aged 17 years old or younger.

NY’s suit is joined by others in Massachusetts and Utah which make similar damning but subtly differing attacks. Together they appear designed to surround TikTok.

The Massachusetts suit alleges “TikTok insidiously achieves massive profits by deploying self-described coercive design features specifically designed to take advantage of the psychological and emotional vulnerability of young users”.

Utah alleges: “For years, TikTok has profited from manipulative design features that contribute to the emotional, financial, and sexual exploitation of children.”

It says TikTok provides tools that makes it simple for “adults to prey on children, including by transacting with and soliciting sexual acts” but “turns a blind eye”.

But perhaps the most serious case has been brought by the family of 10-year-old Nylah Anderson who hanged herself after TikTok recommended a Blackout Challenge.

That aims to remove Section 230 protections from TikTok which would make it liable for all illegal, dangerous, and distasteful content it publishes.

All the Big Tech firms have hidden behind 230 since the dawn of the internet, but now it is coming under legal and political pressure for its repeal.

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