Lawsuit Alleges TikTok Intentionally Hooked Kids While Reaping the Profits from an Illegal Virtual Economy
Attorney General Charity Clark announced a lawsuit today against TikTok Inc. for multiple violations of Vermont’s Consumer Protection Act. This multistate lawsuit follows a similar complaint filed last year against Meta Platforms, Inc. alleging manipulative design features and deceptive business practices. Today’s filing was coordinated with 14 attorneys general across the nation. Seven other states have already sued TikTok under similar theories.
Attorney General Clark’s complaint alleges that TikTok crafted features of its platform to mimic slot machines, a strategic decision that has allowed it to effectively trap young users into cycles of excessive use. The filing details how TikTok has siphoned value out of our kids—including their time, attention, and money. On top of this, the State also alleges that the company paired its livestreaming feature—TikTok LIVE—with an illegal virtual economy, a decision that has resulted in countless instances of sexual and financial exploitation of some of the youngest users. The complaint alleges that for each transaction on its LIVE platform, TikTok has taken up to a fifty percent cut.
Attorney General Clark has been a leader in the fight to hold social media companies responsible for these impacts and today she has called on TikTok to answer for its conduct.
“TikTok profits from addicting kids and teens to their platform, and that is by design. The time has come to end this harmful practice and restore young people’s mental and physical health,” said Attorney General Clark. “I condemn TikTok for exploiting Vermont’s children. I will never stop fighting for our kids.”
The U.S. Surgeon General has described the “profound risk of harm” that social media poses to young users and has recommended warning labels be added to social media platforms. Today’s complaint details how these harms have been borne out locally with noted increases in rates of depression, anxiety, and feelings of isolation in Vermont’s youth. In 2021, a survey conducted by the Vermont Department of Health showed that nearly half (49%) of the State’s high school girls and over a third (35%) of Vermont high school students overall reported poor mental health, including persistent feelings of stress, anxiety, and depression as a result of screen usage. The complaint alleges that these health issues are a result of the excessive time kids are spending on social media platforms like TikTok. On the average school day, 73% of Vermont’s high school students are spending three or more hours in front of screens, including smart phones and social media platforms, according to the survey. Thirty percent of all high school students are spending nearly the equivalent of an entire school day (five or more hours) in front of screens on apps like TikTok.
The lawsuit accuses the company of engaging in deceptive and unfair business practices in violation of Vermont’s consumer protection laws. This includes:
- Lying about the safety of its platform and downplaying the risks posed to young users;
- Deploying a highly addictive algorithm and predatory design features in order to leech time, attention, data, and money from young users without accurately informing them or their parents of the known dangers of their products; and
- Operating an illegal money transmitter system through TikTok LIVE that allowed the company to profit from the financial and sexual exploitation of children.
Vermont’s lawsuit seeks to hold TikTok liable for its illegal business practices and to protect children who use the social media platform. The complaint requests injunctive relief requiring substantive changes in how the company operates, as well as penalties and other monetary relief to address the harms that these practices have caused. The Attorney General’s investigation of other social media platforms for related practices continues.
A copy of the complaint can be found here.
CONTACT: Amelia Vath, Outreach and Communications Coordinator, 802-828-3171