TikTok is designed to be addictive to kids and causes them harm, US states’ lawsuits say

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Updated 09 October 2024
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TikTok is designed to be addictive to kids and causes them harm, US states’ lawsuits say

More than a dozen states and the District of Columbia filed lawsuits against TikTok on Tuesday, saying that the popular short-form video app is designed to be addictive to kids and harms their mental health.
The lawsuits stem from a national investigation into TikTok, which was launched in March 2022 by a bipartisan coalition of attorneys general from many states, including New York, California, Kentucky and New Jersey. All of the complaints were filed in state courts.
At the heart of each lawsuit is the TikTok algorithm, which powers what users see on the platform by populating the app’s main “For You” feed with content tailored to people’s interests. The lawsuits note TikTok design features that they say addict children to the platform, such as the ability to scroll endlessly through content, push notifications that come with built-in “buzzes” and face filters that create unattainable appearances for users.
“They’ve chosen profit over the health and safety, well-being and future of our children,” California Attorney General Rob Bonta said at a news conference in San Francisco. “And that is not something we can accept. So we’ve sued.”
The latest lawsuits come nearly a year after dozens of states sued Instagram parent Meta Platforms Inc. in state and federal courts for harming young people and contributing to the youth mental health crisis by knowingly and deliberately designing addictive features that keep kids hooked on their platforms.
Keeping people on the platform is “how they generate massive ad revenue,” District of Columbia Attorney General Brian Schwalb said in an interview. “But unfortunately, that’s also how they generate adverse mental health impacts on the users.”
The legal challenges, which also include Google’s YouTube, are part of a growing reckoning against social media companies and their effects on young people’s lives. In some cases, the challenges have been coordinated in a way that resembles how states previously organized against the tobacco and pharmaceutical industries.
TikTok, though, is facing an even bigger obstacle, as its very existence in the US is in question. Under a federal law that took effect earlier this year, TikTok could be banned from the US by mid-January if its China-based parent company, ByteDance, doesn’t sell the platform by then. Both TikTok and ByteDance are challenging the law at an appeals court in Washington. A panel of three judges heard oral arguments in the case last month and are expected to issue a ruling, which could be appealed to the US Supreme Court.
In its filings Tuesday, the District of Columbia called the algorithm “dopamine-inducing,” and said it was created to be intentionally addictive so the company could trap many young users into excessive use and keep them on its app for hours on end. TikTok does this despite knowing that these behaviors will lead to profound psychological and physiological harms, such as anxiety, depression, body dysmorphia and other long-lasting problems, the district said.
TikTok is disappointed that the lawsuits were filed after the company had been working with the attorneys general for two years on addressing to the issues, a spokesman said.
“We strongly disagree with these claims, many of which we believe to be inaccurate and misleading,” the TikTok spokesman. Alex Haurek, said. “We’re proud of and remain deeply committed to the work we’ve done to protect teens and we will continue to update and improve our product.”
The social media company does not allow children under 13 to sign up for its main service and restricts some content for everyone under 18. But Washington and several other states said in their filings that children can easily bypass those restrictions, allowing them to access the service adults use despite the company’s claims that its platform is safe for children.
The District of Columbia alleges TikTok is operating as an “unlicensed virtual economy” by allowing people to purchase TikTok Coins – a virtual currency within the platform – and send “Gifts” to streamers on TikTok LIVE who can cash it out for real money. TikTok takes a 50 percent commission on these financial transactions but hasn’t registered as a money transmitter with the US Treasury Department or authorities in the district, according to the complaint.
Officials say teens are frequently exploited for sexually explicit content through TikTok’s LIVE streaming feature, which has allowed the app to operate essentially as a “virtual strip club” without any age restrictions. They say the cut the company gets from the financial transactions allows it to profit from exploitation.
The 14 attorneys general say the goal of their lawsuits is to stop TikTok from using these features, impose financial penalties for their alleged illegal practices and collect damages for users that have been harmed.
The use of social media among teens is nearly universal in the US and many other parts of the world. Almost all teens ages 13 to 17 in the US report using a social media platform, with about a third saying they use social media “almost constantly,” according to the Pew Research Center.
High school students who frequently use social media more commonly have persistent feelings of sadness or hopelessness, according to a new survey from the Centers for Disease Control and Prevention conducted last year in which about 20,000 teenagers participated.
Also on Tuesday, 22 other states including Alabama, Colorado, Florida and Michigan filed an amicus brief urging a Tennessee court to force TikTok to produce documents related to a multistate investigation that those attorney general offices say TikTok is withholding or destroying.
When TikTok failed to produce the requested information last year, 46 states including Minnesota filed an amicus brief in support of Tennessee. The amicus brief they filed Tuesday supports Tennessee’s continued efforts to compel TikTok’s compliance.
Last week, Texas Attorney General Ken Paxton sued TikTok, alleging the company was sharing and selling minors’ personal information in violation of a new state law that prohibits these practices. TikTok, which disputes the allegations, is also fighting against a similar data-oriented federal lawsuit filed in August by the Department of Justice.
Several Republican-led states, including Nebraska, Kansas, New Hampshire, Kansas, Iowa and Arkansas, also previously sued the company, some unsuccessfully, over allegations it is harming children’s mental health, exposing them to “inappropriate” content or allowing young people to be sexually exploited on its platform.


World’s largest captive crocodile Cassius dies in Australia

Updated 02 November 2024
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World’s largest captive crocodile Cassius dies in Australia

  • Cassius, weighing in at more than one tonne, had been in declining health since October 15
  • He took the title after the 2013 death of Philippines crocodile Lolong, who measured 6.17 meters

SYDNEY: A 5.48-meter (18 feet) Australian crocodile that held the world record as the largest crocodile in captivity has died, a wildlife sanctuary said on Saturday. He was thought to be more than 110 years old.
Cassius, weighing in at more than one tonne, had been in declining health since Oct. 15, Marineland Melanesia Crocodile Habitat said on Facebook.
“He was very old and believed to be living beyond the years of a wild Croc,” according to a post by the organization, based on Green Island near the Queensland tourist town of Cairns.
“Cassius will be deeply missed, but our love and memories of him will remain in our hearts forever.”
The group’s website said he had lived at the sanctuary since 1987 after being transported from the neighboring Northern Territory, where crocodiles are a key part of the region’s tourist industry.
Cassius, a saltwater crocodile, held the Guinness World Records title as the world’s largest crocodile in captivity.
He took the title after the 2013 death of Philippines crocodile Lolong, who measured 6.17m (20 feet 3 inches) long, according to Guinness.


Rapper Young Thug pleads guilty to gang, drug and gun charges

Updated 01 November 2024
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Rapper Young Thug pleads guilty to gang, drug and gun charges

ATLANTA: Rapper Young Thug pleaded guilty Thursday in Atlanta to gang, drug and gun charges and will be released from jail, though he could be put back behind bars if he violates the terms of his sentence.
The 33-year-old Grammy winning artist, whose given name is Jeffery Williams, entered his pleas without reaching a deal with prosecutors after negotiations between the two sides broke down, lead prosecutor Adriane Love said. That left the sentence completely up to Fulton County Superior Court Judge Paige Reese Whitaker.
Young Thug’s plea comes two and a half years after he was arrested and charged and nearly a year after the prosecution started presenting evidence in the problem-plagued trial. Jury selection at the courthouse in Atlanta began in January 2023 and took nearly 10 months. Prosecutors have called dozens of witnesses since opening statements last November in the trial of six defendants.
The trial has faced many delays, including in July when the original judge was removed after two defendants sought his recusal, citing a meeting the judge held with prosecutors and a state witness.
Young Thug pleaded guilty to one gang charge, three drug charges and two gun charges. He also entered a no contest plea to another gang charge and a racketeering conspiracy charge, meaning that he decided not to contest those charges but can be punished for them as if he had pleaded guilty.
The judge imposed a sentence of 40 years with the first five to be served in prison but commuted to time served, followed by 15 years on probation. If he successfully completes that probation without any violations, another 20 years will be commuted to time served. But if he violates the conditions, he will have to serve those 20 years in addition to any penalty for a probation violation.
Young Thug must stay away from the metro Atlanta area for the first 10 years of his probation, except for weddings, funerals, graduations or serious illness of family members, the judge said.
But she also ordered him to return to the Atlanta area four times a year during his probation to make a live anti-gang, anti-gun violence presentation at a school or a community organization serving children. She said that can count toward the 100 hours of community service she ordered him to perform each year during probation.
He’s also not allowed to associate with gang members or with the victims or other defendants in the case, with the exception of his brother and the rapper Gunna, with whom he has contractual obligations. He also cannot promote any criminal street gang or gang activity and can’t use hand signs or terminology that promotes a street gang.
Additional conditions include submitting to random drug screens and not possessing a gun. But he is allowed to travel both nationally and internationally for work, even while on probation.
Love had outlined for the judge the evidence she would have presented to prove Young Thug’s guilt, including some of his rap lyrics. She asked the judge to sentence him to 45 years, with 25 years in prison and the remaining 20 years on probation.
The rapper’s lead attorney Brian Steel said they “vehemently disagree” with many of the statements Love made and said it was “offensive” that the state is using Young Thug’s lyrics against him.
Steel said the evidence against his client is weak and accused prosecutors of misrepresenting and hiding evidence, saying Young Thug was “falsely accused.” Steel said he told his client that he thought they were winning the trial and should go through to a jury verdict.
“But he told me, ‘I can’t wait another three months if there is any possibility I could go home because I have children that are hurting. I have things to do,’” Steel said.
Steel asked the judge to impose a sentence of 45 years with five in prison commuted to time served and 40 years on probation.
Young Thug asked the judge to let him go home, saying he wouldn’t be in a similar situation again.
“I’ve learned from my mistakes, you know. I come from nothing and I’ve made something and I didn’t take full advantage of it. I’m sorry,” he said.
The judge said she appreciated that he realized the impact that he has on people worldwide. She said rap music may involve a lot of posturing but that children emulate some of the dangerous behavior mentioned in songs. She encouraged Young Thug to use his talent and influence to encourage kids to do the right thing.
“I want you to try to be more of the solution and less of the problem,” Whitaker said.
A tremendously successful rapper, Young Thug started his own record label, Young Stoner Life or YSL. Prosecutors have said he also co-founded a violent criminal street gang and that YSL stands for Young Slime Life.
He was charged two years ago in a sprawling indictment accusing him and more than two dozen other people of conspiring to violate Georgia’s anti-racketeering law. He also was charged with gang, drug and gun crimes.
Three of his Young Thug’s co-defendants had already pleaded guilty this week after reaching deals with prosecutors. The pleas leave the fates of two other co-defendants still undecided.
Nine people charged in the indictment accepted plea deals before the trial began. Twelve others are being tried separately. Prosecutors dropped charges against one defendant after he was convicted of murder in an unrelated case.


Apple results top Wall Street targets on strong iPhone sales, shares drop on outlook

Updated 01 November 2024
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Apple results top Wall Street targets on strong iPhone sales, shares drop on outlook

  • Early iPhone 16 sales grew faster than iPhone 15 sales, says CEO Tim Cook
  • Apple’s AI strategy includes new iPhone 16 features

Apple beat Wall Street sales and profit expectations on Thursday for its fiscal fourth quarter, bolstered by strong early sales of iPhone 16, and forecast revenue growth of low to mid single digits for the current period.
“We expect our December quarter, total company revenue to grow low to mid single digits year over year,” CFO Luca Maestri said on a call with analysts. Analysts had expected revenue growth of 6.65 percent to $127.53 billion during the first quarter, according to LSEG data.
Shares dropped about 2 percent in extended trading. Apple said sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Sales during the fourth quarter of Apple’s iPhone, the company’s main product, were up 5.5 percent to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations and the China sales total was less than Wall Street expected.
Apple’s fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter.
Cook also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before.
“We’ve had great feedback from customers and developers already,” Cook said. “We’re off to a good start.”
Tom Forte, an analyst at Maxim Group, attributed Apple’s slight share drop to China sales coming in below expectations.
“We see the potential for sustained weakness in China as we await additional details on the earnings call regarding the potential timing of Apple Intelligence in that important country,” Forte said.
Apple’s call with analysts began at 5 p.m. ET (2100 GMT).
The rollout of Apple’s artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell.
Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out.
The early iPhone 16 results on Thursday could allay some of those concerns. IPhone sales helped steady Apple’s fourth-quarter sales in China, which were down less than 1 percent to $15.03 billion overall. Analysts were expecting China sales of $15.78 billion on average, according to data from Visible Alpha.
Apple’s rivals Microsoft and Meta both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment — a measure of its capital expenditures — were up $2.91 billion from the previous quarter to $9.45 billion.
Apple’s lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple’s own data centers, but the company is using its own in-house chips to power those features.
“There would be some (financial) benefit to us by using our own silicon, obviously, but that’s not the reason we’re doing it. We’re doing it because we can provide the same standard of privacy and security that we can provide on device,” Cook said.
Sales in Apple’s services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data.
Sales in Apple’s home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG.
Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment.


Starbucks reports drop in comparable sales, earnings as global demand suffers

Updated 31 October 2024
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Starbucks reports drop in comparable sales, earnings as global demand suffers

  • The Seattle-based company’s strategy to drive demand through promotions and improved loyalty program offers fell flat

Starbucks on Wednesday reported a 7 percent drop in global comparable sales for the fourth quarter as the coffee chain struggles to revive demand for its pricey lattes in the key US and China markets.
Last week, Starbucks reported preliminary fourth-quarter results and suspended its annual forecast through the next fiscal year as new CEO Brian Niccol tries to steer the company toward the path to growth.
The Seattle-based company’s strategy to drive demand through promotions and improved loyalty program offers fell flat in the face of muted spending from cost-conscious consumers.
Starbucks is also facing an uphill battle in China, where it is dealing with a choppy macroeconomic recovery and stiff competition from local brands.
Comparable sales in China, the company’s second-largest market after the US, declined for three straight quarters, falling 14 percent in the fourth quarter.
Investors, however, are betting on seasoned industry veteran and ex-Chipotle Mexican Grill head Niccol to simplify the company’s leadership and operating structure, and reinvigorate the coffee-house culture at Starbucks’ US stores.
Shares of the company have risen about 26 percent since Niccol replaced Laxman Narasimhan as CEO in a surprise announcement in August. They were down about 1 percent in extended trading on Wednesday.
International comparable sales fell 9 percent in the fourth quarter, compared with expectations of a 6.5 percent drop, as per data compiled by LSEG.
Starbucks’ loyalty program growth was also tempered in the fourth quarter, with 90-day active members in the US remaining flat sequentially. That compares with a 3 percent sequential rise reported in the third quarter.
The company’s net income fell to $909.3 million, or 80 cents per share, from $1.22 billion, or $1.06 per share, a year earlier in the fourth quarter ended Sept 29.


Australian police recover 40,000 stolen coins based on the children’s animated series ‘Bluey’

Updated 30 October 2024
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Australian police recover 40,000 stolen coins based on the children’s animated series ‘Bluey’

  • A police statement said on Wednesday 40,061 coins were found on Tuesday afternoon in a self-storage business in Sydney
  • Police were notified on July 12 that 63,000 of the coins had been stolen from a Sydney warehouse

SYDNEY: Australian police said on Wednesday they had recovered more than 40,000 stolen limited-edition coins based on the hit children’s animated series “Bluey.”
The Bluey coins, with a face value of one Australian dollar (65 US cents) each, were found on Tuesday afternoon in a self-storage business in the Sydney suburb of Wentworthville, a police statement said.
Bluey is the name of a blue heeler puppy whose adventures with her cattle dog family living in the Australian city of Brisbane, where the series is produced, have become popular among children around the globe.
The series premiered in Australia in 2018 and began streaming on Disney+ in 2020.
The 40,061 recovered coins were still in the Royal Australian Mint plastic bags that they had been stolen in three months earlier, police said.
Police were notified on July 12 that 63,000 of the yet-to-be-released series of coins produced by the national mint in Canberra had been stolen from a warehouse in the Sydney suburb of Wetherill Park, not far from where the coins were recovered on Tuesday.
Police formed Strike Force Bandit to investigate. Bandit is the name of Bluey’s dad.
Three people have been charged over the theft.
A 27-year-old woman whom police allege drove two accomplices to the July burglary was arrested on Tuesday hours before the coins were recovered.
Two men had earlier been charged over the theft and police were a searching for a fourth suspect.
Police raided a Sydney property on July 31 and recovered 189 of the coins. They discovered the dealer selling them was a legitimate coin collector who had innocently bought them for AU$1.50 (98 US cents) each. He was paid no compensation for the seized coins.
A Royal Australian Mint spokesperson was not available for comment on Wednesday.