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Of the many allegations against TikTok brought by a group of attorneys general, one stands out for its focus on the company's abusive use of its virtual currency. That currency "substantially harms children," and the livestreaming feature "exploits them financially," according to the lawsuit. Through TikTok's system, children buy the virtual tokens — TikTok Coins — with real money, and the company gets 50% of the revenue from the purchases, the lawsuit says. The suit says that TikTok "extracts" a commission of up to 50% from these exchanges without having obtained the necessary license. "If you make it look pretty and joyful and kind of innocent looking … it makes it easier to manipulate the children," Robins said.
Persons: ByteDance, TikTok, Brian Schwalb, Gabriel Robins, Robins, Brooke Erin Duffy Organizations: U.S . House, District of Columbia, TikTok, CNBC, Social, University of Virginia, Federal, D.C, Cornell University's Locations: TikTok, Culver City , California
Wallace twice grilled Trump in James' NY fraud case and also gave opening and closing statements. AdvertisementNew York Attorney General Letitia James with assistant attorneys general Andrew S. Amer, center, and Kevin C. Wallace, right. Related storiesAround-the-clock notifications disrupt their sleep, the "autoplay" feature provides an endless stream of videos, and "beauty filters" encourage young girls to "fix" their appearances, the James lawsuit alleges. AdvertisementThe TikTok lawsuit may be another of the kind of yearslong litigation marathons that James' office hasn't shied from since she first took office in 2019. The Trump fraud investigation began in 2018, and also isn't over yet.
Persons: NY AG Letitia James helms, Kevin Wallace, Wallace, Trump, , Donald Trump, Letitia James, James, Kevin C, David, James ' Goliath, Andrew S, Amer, Brittainy Newman, TikTok, shied, Wayne LaPierre Organizations: NY AG, Service, Donald Trump , New York, Trump, Facebook, New, National Rifle Association Locations: James ', Donald Trump ,, Manhattan
States sue TikTok over app's effect on kids' mental health
  + stars: | 2024-10-08 | by ( Dan Mangan | ) www.cnbc.com   time to read: +5 min
Schwalb's suit alleges a slew of "profound" mental health risks are posed to teens and children by compulsive TikTok use, including depression, anxiety, sleep loss and body dysmorphia. "TikTok knows that its design features make its App more addictive and keep users engaged for longer," the suit in D.C. Superior Court alleges. The complaint also says that in 2019, the company introduced "two new dangerous features": a live-streaming feature called TikTok LIVE and a virtual currency system called TikTok "Coins." TikTok incentivizes users to go LIVE by promising these monetary rewards 'the more popular [their] content becomes.'" The suit says that TikTok "earns substantial revenue" from its Coins, charging commissions of up to 50% on each transaction.
Persons: ByteDance, Brian Schwalb, Schwalb, TikTok Organizations: U.S . House, District of Columbia, CNBC, Washington , D.C, NHL's Washington Capitals hockey, Schwalb, AGs, Senate Locations: TikTok, Culver City , California, New York, California, U.S, D.C, Los Angeles, Washington ,, United States, China, Beijing
download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The high-profile startup announced the closing of a $6.6 billion funding round that valued it at $157 billion. And more exits could be coming since OpenAI is reportedly working on allowing its employees to sell their shares in the company . Win McNamee and Didem Mente/Anadolu Agency via Getty Images; Jenny Chang-Rodriguez/InsiderIt's important to remember OpenAI's eye-popping valuation is just that … a valuation. Which gets us back to $157 billion OpenAI.
Persons: , Elon Musk's, Josh Kushner's, Cathy Wood's, Chase, Here's, Mira Murati, Kevin Weil, Rob Price, OpenAI, Sam Altman, Win McNamee, Didem, Jenny Chang, Rodriguez, Brad Gerstner, Dan DeFrancesco, Hallam Bullock, Jordan Parker Erb, Milan Sehmbi, Amanda Yen Organizations: Business, Service, Elon, Elon Musk's SpaceX, Venture, Microsoft, Nvidia, Anadolu Agency, Getty, Big Tech Locations: Silicon Valley, New York, London
The company spent much of the event pushing TikTok Shop partners to test out live selling. But live selling was the clear focus of the event, five partners who attended told Business Insider. AdvertisementA second partner who attended the event described its content as "live, live, live." The invite list for the summit may have also played a role in focusing the discussion around live selling. Several attendees said the prospect of a ban wasn't brought up at the company's TikTok Shop partner summit.
Persons: TikTok, , Jake Bjorseth, Trndsttrs, what's, ByteDance, adQuadrant, Warren Jolly, you've, Jolly, it's, Bjorseth, influencers, TikTok's, wasn't Organizations: TikTok, Service, Culver City, Business, Shop, TikTok's, Douyin, BI, Amazon, Walmart Locations: China, Culver, livestream, TikTok's China, Asia, Shanghai, Hangzhou, North America, Europe
Gen Z workers are redefining office dress codes with their fall fashion trends. AdvertisementCharli XCX may have painted this summer "Brat" green, but a new season — and thus new style trends — are upon us. As a result, office fashionistas are building their fall work wardrobes. As for "Brat Summer," Rose compared it to the pink craze sparked by "Barbie" summer in 2023, which she said faded away by September last year. The office encourages employees to wear what they want, and Butler takes full advantage by expressing her street style.
Persons: , what's, Zers, Jordan Booker, Jordan Booker Booker, Booker, Ralph Lauren, he's, Bella Hadid, Syndey Rose, Sydney Rose, Sydney Rose Rose, Rose, Barbie, Tealoni Butler, Butler, Tealoni Butler Butler Organizations: Service, Business, Nike, Sydney Locations: Patagonia
Read previewIt could be the end of an era for publishers on Snapchat. A fourth said any time publishers get mixed up with creators, it's bad for publishers, adding that their Snapchat revenue was already in decline so the platform had become less of a focus. A few years later, as user-generated content became dominant on social apps like TikTok, the company shifted focus to individual content creators. Advertisement"The way they're structured now is less built to over cater to traditional publishers," a fifth Snap publisher exec said. ESPN on Snapchat Discover SnapchatSome publishers have shifted resources away from Snapchat during a challenging period for the media business as a whole.
Persons: , Snapchat Snapchat, it's, Evan Spiegel, Presley Ann, Getty, Snap's, Spiegel, Digiday, influencers, Ben Reininga, Sophie Crowther, There's, Ben Jeffries Organizations: Service, Big Tech, Business, Publishers, Meta, Google, ESPN, The Daily Mail, CNN, Snapchat, Harvard University, Dollar Locations: Snapchat
A leaked internal guidebook from MrBeast is being passed around the tech world. Tech workers and investors are digging into the YouTuber's views on hiring, managing, and more. Related storiesA hardcore founder who writes like a real personMrBeast's guidebook is the latest "hardcore" corporate document to go viral in the tech world. "Leaked internal emails and memos are religious texts for the tech world," Alder said. Donaldson's casual, unpretentious writing style was a big factor in helping it spread across the tech world, industry insiders told BI.
Persons: , He's, Jimmy Donaldson, Donaldson, Brian Chesky, Combinator's Paul Graham, Tom Alder, Alder, Jeff Bezos, ByteDance, Donaldson isn't, it's, John McCarus, Steve Jobs, MrBeast, Rachel Roberts Mattox, Mattox, Marc Cohen, Abhishek Sharma Organizations: Tech, Service, Hacker, Big Tech, YouTube, Unbundled, Google Locations: Silicon Valley
But the news wasn't greeted warmly in some corners of media, as it raised concerns that Snapchat might become the latest in a line of Big Tech platforms to deprioritize traditional media publishers in favor of creators. A fourth said any time publishers get mixed up with creators, it's bad for publishers, adding that their Snapchat revenue was already in decline so the platform had become less of a focus. A few years later, as user-generated content became dominant on social apps like TikTok, the company shifted focus to individual content creators. Advertisement"The way they're structured now is less built to over cater to traditional publishers," a fifth Snap publisher exec said. ESPN on Snapchat Discover SnapchatSome publishers have shifted resources away from Snapchat during a challenging period for the media business as a whole.
Persons: , Snapchat Snapchat, it's, Evan Spiegel, Presley Ann, Getty, Snap's, Spiegel, Digiday, influencers, Ben Reininga, Sophie Crowther, There's, Ben Jeffries Organizations: Service, Big Tech, Business, Publishers, Meta, Google, ESPN, The Daily Mail, CNN, Snapchat, Harvard University, Dollar Locations: Snapchat
Read previewTikTok is shutting down its music-streaming app, TikTok Music, on November 28. AdvertisementIt's unclear how successful TikTok Music was at building a user base in the five countries where it launched. On Apple's app store, TikTok Music is the 28th most popular music-streaming app in Indonesia and the 71st most popular in Brazil. Why not send those TikTok music fans to a streaming app it owns? Going forward, the company will likely focus on its "Add To Music App" feature, which lets TikTok users add songs or pre-save tracks they hear on TikTok to other streaming services like Spotify, Amazon Music, and Apple Music.
Persons: , Ole Obermann, TikTok, ByteDance, SiriusXM, hasn't Organizations: Service, Business, TikTok, Universal Music Group, YouTube, Spotify, Amazon Music, Apple Music Locations: Indonesia, Brazil, Singapore, Australia, Mexico, India
Read previewKate Jhaveri, TikTok's head of global marketing, is leaving the company this month as part of a leadership shake-up, according to an internal memo shared with staffers. "Together, we decided the best way to achieve this vision is to remove the head of global marketing role, and bring everyone within Global Brand & Comms under one leader." Its former VP of global communications, Hilary McQuaide, exited the company that same month, the executive posted on LinkedIn. Together, we decided the best way to achieve this vision is to remove the head of global marketing role, and bring everyone within Global Brand & Comms under one leader, aligning our work and goals toward one comprehensive vision. AdvertisementFinally, we are also making a change to our social media team to enable a more scalable model for Global Brand & Comms.
Persons: , Kate Jhaveri, Zenia Mucha, Mucha, Jhaveri, Zuber Mohammed, Hilary McQuaide, ByteDance, Kate, Dexter Fedor, Manish Gupta, Alistair Lennie, Zuber, Alastair Boyle, Jordan Guo, Carol Baracat, Helen Lawrence, Erin Fors Organizations: Service, Global, Business, Disney, NBA, LinkedIn, CSR, AMS, EMEA, Global Brand Locations: Beijing
A former Department of Justice attorney told Business Insider this week that the court seemed poised to rule against TikTok. AdvertisementMany TikTok creators appear unconcerned by the prospect of a ban. Others are fighting it: In May, a group of eight TikTok creators filed a lawsuit against the US government over the potential ban. TikTok users turn to the app for more than just entertainment. The current TikTok staffer told BI that they felt that advertisers were paying less attention to TikTok ban news as they've been busy gearing up for the holiday season.
Persons: , it's, ByteDance, Daniel Openshaw, haven't, TikToker Alex Ojeda, aren't, They're, Emarketer, they've, Kantar, Gonca Organizations: Service, DC, Department of Justice, TikTok, Business, US, Tech, Jovena, Clutch, Expand, Brands, Pew Research Center, . Business, YouTube, Meta, Amazon Locations: Jovena Natal, New York, California, TikTok
Meanwhile, in today's newsletter, we're looking at how AWS is ramping up its sales team to pitch customers on AI . The big storySell, sell, sellAmazon; Getty Images; Alyssa Powell/BIWhen it comes to the AI revolution, building is only half the battle. AdvertisementAfter drawing scrutiny from investors about their massive investments in generative AI, tech companies are prioritizing getting returns on their big bets. Amazon; OpenAI; Microsoft; Getty Images; Chelsea Jia Feng/BIAWS' pressure to ramp up AI sales isn't just focused on ROI. And while these companies can't afford not to pitch their customers on AI tech, they also risk turning them off to the idea by selling them products that might not live up to expectations.
Persons: , Donald Trump, Trump, Alyssa Powell, Insider's Eugene Kim, Eugene, Chelsea Jia Feng, it's, Anna Kim, Getty, Tyler Le, Martha Stewart, Al Capone, Morgan Stanley, Dre, Jeff Chiu, Larry Page's, Wayne Osborne, Elon, Grimes, Ryan Mac, Kate Conger unearths, Musk, Department's, We've, Kamala Harris, Biden, Booker, Dan DeFrancesco, Hallam Bullock, Milan Sehmbi, Amanda Yen Organizations: Service, FBI, Business, Amazon Web Services, that's, AWS, Microsoft, Getty, Google, Sunshine, Twitter, Huber & Starke, Hollywood, Teamsters Locations: West Palm Beach , Florida, today's, Florida, hustles, New York, London
TikTok's legal showdown begins: Here's what's at stake
  + stars: | 2024-09-16 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTikTok's legal showdown begins: Here's what's at stakeFrank McCourt, Project Liberty founder, joins 'Squawk Box' to discuss TikTok's court hearing today to stop a possible ban or sale of the all in the U.S., the national security risk posed by the app, his plans to buy TikTok, and more.
Persons: Here's, Frank McCourt Organizations: Liberty Locations: U.S
Attorneys for the US government and the widely popular social media app faced off on Monday in a federal appeals court as TikTok fights against a law that could soon see the platform banned in the country. Rozenshtein said that he believes the appeals court will rule "decisively" and "comprehensively" against TikTok. AdvertisementTikTok's lawyer argued the law 'imposes extraordinary speech prohibition'In his oral arguments on Monday, TikTok lawyer Andrew Pincus slammed the law as "unprecedented." AdvertisementThe panel of judges, at times, seemed skeptical of TikTok's arguments. After the appeals court issues its ruling, the case could end up before the Supreme Court where Rozenshtein also predicts TikTok will not fare well.
Persons: , Alan Rozenshtein, Rozenshtein, Joe Biden, TikTok's, Biden, haven't, TikTok, Andrew Pincus, Pincus, Daniel Tenny, Sarah Kreps, Kreps, Jaffer Organizations: Service, Appeals, District of Columbia Circuit, TikTok, Business, Justice Department, University of Minnesota Law School, Chinese Communist Party, Justice, Tech, Institute, New York's Cornell University, Columbia University —, Pew Research Center Locations: TikTok's Beijing, ByteDance, China, United States
It's also a sign of just how expensive the business of training and running AI models is getting. AdvertisementGenerative AI is a cash-guzzlerStartups like OpenAI need to raise huge amounts of capital to build smarter AI models. Just look at the spending of Big Tech firms working to improve their AI models. Consolidation has struck the AI industry in recent months, as some top startups trying to build AI models have been gutted. AI startups serious about progressing on LLMs will need to figure out the answer to this pretty quickly.
Persons: , Elon, Sam Altman, ChatGPT, It's, Justin Sullivan, OpenAI, Dario Amodei, Anthropic, Pretty, Amodei's Anthropic, Dario Amodei's Anthropic, Noam Shazeer —, Ben Bergman, Sri Muppidi, it's, Elad Gil, Gil Organizations: Service, Bloomberg, Business, SpaceX, Getty, Microsoft, Big Tech, Street, Nvidia, Apple, Amazon, Samsung, Google Locations: OpenAI, aren't
TikTok faces a January 19, 2025, deadline to find a new US owner or shut down. Despite the looming deadline, TikTok employees and ad buyers act as if nothing will change. Go to newsletter preferences Thanks for signing up! download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . But inside the company, The Information reports, most US TikTok employees are behaving as if nothing is going to happen at all.
Persons: Organizations: Service, Business
But if you think there's a lot of AI content on TikTok today, buckle up. The output rate ranges anywhere from three auto-posted videos a week to 120 videos a month for a single TikTok or YouTube account. The company charges $30 a month for daily AI-generated videos and $45 to post twice a day. An example of an AI-generated video provided by Faceless.video cited Bible verse Isaiah 41:10 and got thousands of "likes." "My view is that YouTube, TikTok, Instagram, they're not going to really show organically a lot of automated AI content," Sanket Shah, CEO of the video-creation platform Invideo, told BI.
Persons: , Jesus, Instagram's, It's, Faceless.video, Jacob Seeger, Seeger, TikTok, they're, Shah Organizations: Service, Facebook, Business, YouTube
In a decision on August 27, the US Third Circuit Court of Appeals found that, in 2021, TikTok — via its "For You Page" algorithm — recommended a video promoting a "blackout challenge" to 10-year-old Nylah Anderson. The company had argued in court that it was immune from prosecution due to Section 230 of the Communications Decency Act. AdvertisementBut the Third Circuit ruling could change that. French and other supporters of the Third Circuit ruling argue that TikTok's liability protections should end where its algorithmic suggestions begin. If they do, their ruling could have even broader consequences than the Third Circuit ruling.
Persons: , Nylah Anderson, Paul Matey, TikTok, Nylah, asphyxiate, We'd, David French, Betsy Rosenblatt, Rosenblatt, Clarence Thomas, Neil Gorsuch, SCOTUS, Amy Coney Barrett Organizations: Service, US, Appeals, TikTok, Business, Communications, Circuit, New York Times, Third Circuit, Spangenberg, for Law, Technology, Arts, Moody
Americans don't want to ban TikTok anymore
  + stars: | 2024-09-05 | by ( Dan Whateley | ) www.businessinsider.com   time to read: +4 min
Fewer Americans want to ban TikTok than did a year ago, according to a new survey from the Pew Research Center. While half of US adults supported a TikTok ban in March 2023, now just one in three (32%) say they want a government ban. The decline in support for a TikTok ban is occurring across party lines. Former President Trump once sought to ban or force a sale of TikTok, but recently flip-flopped on the issue. Vice President Harris hasn't shared a position on the TikTok ban.
Persons: TikTok, Donald Trump, Kamala Harris, Joe Biden, ByteDance, hasn't, G.S, Hans, Pew, Trump, Harris hasn't Organizations: Service, Pew Research Center, Pew, Business, Apple, Google, Chinese Communist Party, Cornell Law School Locations: TikTok, Beijing
More TikTok users are using the app to find their next vacation, the company's travel lead told BI. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementTikTok is helping travelers find new places for a vacation as users increasingly use the app for search rather than just scrolling for entertainment. "People are now really leaning into TikTok to search for the next destination, where to travel, and who to fly with," she told Business Insider.
Persons: , Hannah Bennett Organizations: Companies, Service, Business Locations: Bruges, Paris
Customer shopping for school supplies with employee restocking shelves, Target store, Queens, New York. Altogether, this year's back-to-school spending, including for college students, is expected to reach $38.8 billion, the NRF also found. Higher prices are partly to blame: Families are now paying more for key back-to-school essentials like backpacks ahead of the new school year. The must have items of the back-to-school season"Back-to-school hauls have started infiltrating TikTok earlier than I've ever seen it," said Casey Lewis, a social media trend expert and founder of trend newsletter After School. How to keep back-to-school spending in check
Persons: Lindsey Nicholson, Happe, WalletHub, I've, Casey Lewis, Lewis Organizations: UCG, Intuit Credit Karma, CNBC, Deloitte, Adidas Locations: Queens , New York
"We are bombarded with shopping opportunities," said Casey Lewis, a social media trend expert and founder of trend newsletter After School. Generation Z, especially, makes shopping decisions heavily driven by TikTok and Instagram, where influencer recommendations play a very significant role, another KPMG report showed. The rise of #underconsumptioncoreTikTok's latest financial trend, #underconsumptioncore, is about making the most of what you already have and rejecting the temptation to buy more (and more and more). This time around, #underconsumptioncore stems from a number of other factors, as well, including a desire to live more intentionally and sustainably. Casey Lewis social media trend expert
Persons: Casey Lewis, Intuit Credit Karma, That's, Allison Bornstein, Brett House, underconsumption Organizations: Facebook, Intuit Credit, KPMG, Columbia Business School
Read previewTikTok parent company ByteDance's headquarters in Singapore were left smelling like vomit after a mass food poisoning incident on Tuesday. ByteDance had hired two food caterers — Yun Hai Yao and Pu Tien Services — to run each of the buffet lines. The Singapore Food Agency suspended one of Yun Hai Yao's branches and Pu Tien's catering kitchen on Wednesday. AdvertisementOver 100 individuals hit with food poisoningThe food left 130 individuals with gastroenteritis symptoms, the Singapore Food Agency and the country's health ministry said in a statement on Wednesday. Representatives for ByteDance, Pu Tien, and Yun Hai Yao didn't immediately respond to requests for comment from Business Insider.
Persons: , Andre, ByteDance, Yun Hai Yao, Pu, Yun, Pu Tien, Yun Hai Yao didn't Organizations: Service, CNA, Business, Pu Tien Services, Singapore Food Agency, Singapore Civil Defence Force, Singaporean, The Straits Times, Bloomberg, Straits Times, Representatives Locations: Singapore
At Club Penguin, I adopted colorful pets called puffles and purchased kitsch furniture for my virtual igloo. "I was big on Club Penguin, Wizard101, Moshi Monsters, and this obscure one called Ourworld," he told me. Club Penguin, which ran from 2005 to 2017, stands out as one of the era's most beloved virtual worlds. "That same generation logged into Club Penguin to play with friends." In 2017 it shut down Club Penguin and replaced it with a mobile version, Club Penguin Island.
Persons: millennials, Gen Zers, Dylan Maleno, Lance Priebe, I'd, Jake Hahn, they're, Sara Grimes, weren't, Flappy Bird, Disney, Toontown, they've, MMOs, Roblox, Ashley Hernandez, " Hernandez, Neopets, Dominic Law, Aimee Pearcy Organizations: Penguin, Disney, University of Toronto's, of Information, Fortnite, Facebook, The New York Times Locations: Pennsylvania, Wizard101, Moshi, Illinois, Fortnite, New York City
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