Utah sues TikTok, terms TikTok Live 'virtual strip club' for minors

Lawsuit against TikTok is partly based on a recent investigation, which describes TikTok Live as a virtual strip club and a murky milieu of sexual exploitation
An undated image of TikTok logo on a mobile screen. — Freepik
An undated image of TikTok logo on a mobile screen. — Freepik

The US state of Utah is suing the social media platform TikTok, alleging that one of its most popular and profitable features, TikTok Live, is being misused for the sexual exploitation of children and teenagers. 

Young users are reportedly engaging in suggestive and inappropriate behaviours to receive virtual gifts, which can be converted into real money. 

The lawsuit is partly based on a recent investigation, which describes TikTok Live as "a virtual strip club" and "a murky milieu of sexual exploitation." 

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The Utah Attorney General and the state’s Consumer Protection Agency accuse TikTok of violating the Consumer Sales Practices Act and are demanding a jury trial. 

The lawsuit argues that TikTok’s in-app economy, which has already facilitated billions of dollars in transactions, has fostered a troubling culture of exploitation and illegal activities. Although TikTok has control over the platform, there is reportedly little oversight over these transactions. 

Additionally, TikTok is accused of not being registered with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) as required by law. This means that all transactions on the platform bypass regulatory systems designed to identify and combat sexual abuse and other illegal activities. 

The lawsuit comes amid an existential crisis for TikTok in the US, as President Biden has signed a bill that will ban the app nationwide early next year if its Chinese parent company ByteDance does not sell it to a US owner.