Streams on TikTok Live were used to exploit children, according to a newly unredacted lawsuit filed by Utah Attorney General Sean Reyes. The lawsuit says that TikTok was not only aware that TikTok Lives were exposing minors to concerning messages from adults, but the company also directly profited off of some of the exchanges through TikTok Live’s virtual gifting system.
Following an investigation by Forbes into TikTok Live, TikTok conducted its own review called “Project Meramec,” according to the suit. The company found that “hundreds of thousands of children” were getting around TikTok’s age restrictions, hosting livestreams and interacting with adults.
Because TikTok pockets a portion of the sale of digital gifts in livestreams, the company was technically making money on “transactional gifting” over “nudity and sexual activity” that happened during streams. And since TikTok’s algorithm favors livestreams where virtual gifts are being exchanged, the lawsuit says, some of these sexually exploitative streams were also distributed more widely than they would have been otherwise.
The lawsuit details another TikTok investigation, “Project Jupiter,” that looked in to whether TikTok Live’s gifting feature was being used to launder money. As it turns out, it was. According to the lawsuit, the company found that “criminals were selling drugs and running fraud operations” during livestreams.
When reached for a comment on the lawsuit, TikTok shared the following statement:
This lawsuit ignores the number of proactive measures that TikTok has voluntarily implemented to support community safety and well-being. Instead, the complaint cherry-picks misleading quotes and outdated documents and presents them out of context, which distorts our commitment to the safety of our community.
We stand by our efforts, which include: robust safety protections and screen time limits for teen accounts enabled by default, Family Pairing tools for parents to supervise their teens, strict livestreaming requirements, and aggressive enforcement of our Community Guidelines on an ongoing basis.
Utah’s AG filed the redacted version of this lawsuit in June 2024, following a different suit from 2023 concerning the addictive design of the TikTok app. The Utah lawsuit isn’t the first time the company has come under scrutiny for its handling of child safety. The FTC has investigated TikTok’s handling of child privacy, and the ban of the app — now headed to the Supreme Court on appeal — was partially pushed over concerns with how social video app could be used to influence children.