Washington D.C. Attorney General Brian L. Schwalb has taken action against the social media giant TikTok, filing a lawsuit that accuses the platform of fostering an environment harmful to children, and of operating an illegal, unlicensed virtual economy. As reported by the Office of the Attorney General (OAG) today, October 8, the OAG alleges that TikTok intentionally designed its platform to indulge in the vulnerabilities of young minds, perpetuating cycles of addiction that have been shown to result in mental and physical distress.
According to the OAG's complaint, the app misleads users and their parents about the actual dangers present, with TikTok claiming the platform is a safe environment for kids. The lawsuit, which is part of a broader initiative that includes 14 state attorneys general, has documented a disturbing quotient of psychological issues amongst the district's youth – such as body dysmorphia, sleep loss, depression, anxiety, and a significant number of suicide considerations – that align with the screen time usage patterns uncovered by the Office of the State Superintendent of Education’s report.
In breaking down the platform’s mechanisms, the OAG points out TikTok's employment of a dopamine-boosting algorithm that anchors youth to their screens, a strategy claimed to increase risk of online financial exploitation. Beyond just engendering addiction, the company has been accused of untruthfully representing its app as controllable in terms of engagement and data privacy while harvesting and exploiting user data in reality, as per the OAG's statement.
More gravely, TikTok is under fire for operating what is deemed to be an unlicensed money transmission system. Its features—TikTok LIVE and TikTok Coins—facilitate a virtual economy where users can exchange real money, after TikTok deducts up to a 50% service fee. As stated by Attorney General Schwalb, such operations occur without the necessary registration with the DC Department of Insurance, Securities, and Banking (DISB) or the US Treasury Department, skirting safeguards meant to prevent money laundering and fraud.
The Attorney General's office has further highlighted the role TikTok plays in the sexual exploitation of children on its platform, with the company profiting from each transaction made during livestreams. "TikTok’s platform, designed to be dangerously addictive, inflicts immense damage on an entire generation of young people," Schwalb said. "This lawsuit seeks to put an end to its illegal, deceptive, and predatory behavior."
In response to these alarming trends, consumers are urged to report unfair business practices or illegal activities related to TikTok or other unethical business entities. The guidance provided by OAG includes submitting a complaint online, contacting the Consumer Hotline, or emailing the designated consumer protection department for further assistance.
