[co-author: Stephanie Kozol]*
The Circuit Court of Cleburne County, Arkansas, denied TikTok and its parent company ByteDance’s motion to dismiss a lawsuit brought by Arkansas Attorney General Tim Griffin. In the complaint, the AG alleges that TikTok engages in deceptive trade practices and has unjustly profited from the data of minors.
In denying the motion, the court rejected TikTok’s argument that the company does not have sufficient ties to Arkansas to support jurisdiction because the complaint sufficiently alleges the substantial use of the TikTok app by Arkansas residents, the collection of Arkansas residents’ data within the state, as well as financial transactions and employment within the state. Secondly, the court rejected TikTok’s claim that the state had not adequately pled the essential elements of a violation of Arkansas’s deceptive trade practices statute, instead finding that allegations that TikTok made several misrepresentations about the safety and content of the TikTok app for minors was sufficient as a matter of law to allow the case to proceed under this theory.
The court also rejected TikTok’s argument that Section 230 of the Communications Decency Act barred the state’s claims. Section 230 has a lengthy history of protecting social media platforms from claims related to content posted by a third party on their platforms. However, the court made a distinction in this case because TikTok made its own age-rating and content representations, which constitute TikTok’s own speech, not that of third parties. The court added that Section 230 does not bar the State’s claims regarding the safety of TikTok’s app and its allegedly addictive nature.
Why It Matters
AGs are frequently at the forefront of regulating developing technology. Arkansas’ lawsuit against the company reflects the AG’s ability to act swiftly against perceived threats created by rapidly evolving technology landscapes by relying on existing laws (i.e. UDAP) in the absence of specifically applicable legislation. The court’s denial of TikTok’s motion to dismiss marks a recognition that AGs wield significant power when it comes to issues involving digital privacy, consumer protection, and the responsibilities of online platforms.
Additional articles on state AG offices in the deceptive trade practices space:
*Senior Government Relations Manager
