Reported by Derek Brown, Utah Attorney General
The Utah Department of Commerce’s Division of Consumer Protections, represented by the Utah Attorney General’s Office, announced today the release of previously redacted information related to its most recent complaint filed against TikTok Inc. (TikTok). The previously redacted allegations include details from TikTok’s internal investigation, what the company called “Project Meramec,” which revealed that TikTok knew that hundreds of thousands of minors were accessing their LIVE product and its age restrictions were ineffective. Additionally, the Division alleges the company’s investigation recognized that children were being sexually exploited, and TikTok decided not to stop anything because of the financial profits it was raking in.
The less-redacted complaint, which is being filed with permission of Judge Coral Sanchez of the Utah Third District Court, reveals allegations that highlight concerns that TikTok operates an open-door policy allowing predators and criminals to exploit users, especially children. Additionally, it alleges that TikTok pockets as much as half of every money exchange it brokers on its LIVE platform. Through the coins and gifts, some of which take the form of plush toys targeted to very young minors, TikTok reaps exorbitant profits.
The updated complaint, initially filed in June 2024, now shows the Division and the Attorney General’s Office had enough evidence to allege that TikTok coupled its livestream feature with monetization to create an environment built on exchanging TikTok’s virtual currency for sexual and illegal acts. TikTok’s internal “Project Meramec” investigation and the admissions of its employees document how TikTok LIVE allows adults to pay young users to strip, pose, and dance provocatively for “diamonds,” which can be cashed out for real money.
“Utah’s unredacted complaint demonstrates how clearly depraved TikTok’s business model is. Such a blatant disregard for the safety of our children on the platform, not to mention profiting from their exploitation, shocks the conscience and proves that TikTok harms children,” said Utah Governor Spencer Cox.
TikTok’s alleged profiteering extends beyond child sexual exploitation. The complaint alleges TikTok performed another internal investigation called “Project Jupiter” that concluded that its livestream feature, along with its virtual currency, has enabled criminals to launder money, sell drugs, and fund terrorist groups, such as the Islamic State of Iraq and Levant (ISIL).
Financial Crime News Briefs 