EU to Review TikTok's Terms of Service

TikTok Faces EU Scrutiny Over Consumer Practices

European lawmakers have indicated that TikTok has a one-month timeframe to address concerns voiced by EU consumer protection agencies earlier in the year.

The European Commission has initiated what it terms a “formal dialogue” with the video-sharing platform, focusing on its commercial practices and policies.

Specific Areas of Concern

Key areas under review include concealed marketing strategies, potentially aggressive advertising aimed at children, and certain contractual stipulations within TikTok’s policies that may be perceived as deceptive or confusing to consumers, according to the Commission.

Justice commissioner Didier Reynders emphasized that the increased digitalization spurred by the pandemic presents both opportunities and risks, particularly for vulnerable consumer groups.

He stated that targeting children with disguised advertising, such as embedded promotions within videos, is prohibited within the European Union.

Reynders believes this dialogue will assist TikTok in adhering to EU regulations designed to safeguard consumers.

Background and Initial Complaints

This action follows a report submitted by the European Consumer Organisation (BEUC) in February, outlining several of TikTok’s policies and practices.

The BEUC highlighted concerns regarding unfair terms and copyright issues.

Furthermore, the organization flagged the potential exposure of children to unsuitable content and alleged misleading data processing and privacy practices.

Simultaneously, consumer organizations from 15 EU countries filed complaints, urging national authorities to investigate TikTok’s operations.

Multi-faceted EU Investigation

TikTok is now facing scrutiny not only from the Commission but also from a network of national consumer protection authorities.

This network is jointly led by the Swedish Consumer Agency and the Irish Competition and Consumer Protection Commission, which oversees privacy-related matters.

The BEUC has expressed its desire for the Commission to initiate a formal enforcement procedure, questioning the current approach.

A BEUC spokesperson stated the organization hopes the dialogue yields positive outcomes for consumers, addressing all previously raised concerns.

The BEUC also requests to be consulted before any agreement is reached.

TikTok’s Response

Caroline Greer, TikTok’s director of public policy, provided a statement regarding the Commission’s action.

TikTok asserts that it employs age verification measures for personalized advertising.

Users are required to confirm they are 13 or older to receive targeted ads, and must also meet the age of digital consent in their respective EU country, along with providing consent for targeted advertising.

Concerns Regarding Age Verification

However, TikTok’s age verification technology has faced prior criticism for its perceived weaknesses.

Recent enforcement action by the Italian data protection agency, focused on child safety, prompted TikTok to commit to strengthening its age verification processes within Italy.

The Italian action also led to the removal of over 500,000 accounts suspected of belonging to users under the age of 13, raising questions about TikTok’s claims regarding exposure to targeted ads.

Transparency and Labeling Efforts

TikTok maintains that it clearly labels sponsored content.

The company has recently made changes, switching the label on video advertising from “sponsored” to “ad” for increased clarity.

TikTok is also developing a toggle to enhance transparency regarding advertising by other users, requiring them to prominently disclose sponsored content.

This tool is currently in beta testing in Europe, with plans for general availability this summer, and will be integrated into TikTok’s Terms of Service.

However, the effectiveness of this toggle hinges on adequate enforcement to prevent misuse.

Increased Transparency and Regulatory Preparation

TikTok recently launched a transparency center in Europe, seemingly aimed at addressing concerns and preparing for increased oversight of digital platforms operating within the EU.

This move coincides with the EU’s efforts to modernize its digital rulebook.