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TikTok Faces New Claims That It Earned Money From Illegal Videos Involving Minors

Internal reports suggest the platform failed to act on warnings about sexual content involving children and revenue generated from those posts.

By Rahul Mehta ·

If you have a teenager with a smartphone, you likely know how much time they spend on TikTok. New allegations suggest that for some young users, that time may have been spent viewing content that adults should not have seen, or paying to see content that involved other minors. The core of the new claim is that the company kept the money it earned from these interactions while knowing there were problems with age verification and content moderation.

The accusations come from both current and former employees who say they raised flags internally for some time. They claim that the platform allowed viewers to pay to access sexual content featuring minors. This creates a specific financial issue because social media companies are legally required to report suspicions that money is being obtained illegally through their services. If the company kept the profits without reporting the potential fraud, it could be seen as a financial crime.

The timeline of these internal warnings points to a pattern of inaction. Employees noted that users under the age of 18 were finding ways to bypass age restrictions. They also found loopholes that allowed young users to block parents and guardians from reviewing their activity on the app. This meant that the safety features designed to protect children were not working as intended, and the company was not fixing the gaps quickly enough.

There is another layer to the story that involves the Federal Trade Commission. The internal documents show that TikTok chose not to conduct surveys to assess the ages of its users. The reason given was a concern that the company would have to share the results with the regulator. By avoiding these surveys, the company may have limited its own view of how many users were actually adults versus children, potentially making it harder to enforce age-based rules.

Senior leaders were reportedly aware of these issues. The employees say the response from the top was inadequate. This is significant because leadership is expected to act on internal warnings. When a company knows its platform has a problem with illegal content involving children and it continues to operate without major changes, it raises questions about how seriously the business takes its legal and ethical obligations.

Beyond the sexual content, there were also concerns about the mental health impact on young users. Internal reports expressed worry that teenagers were being shown content related to suicide and self-harm. The team believed the platform was not taking the proper steps to tackle this issue. For a user base with a high proportion of teens, this is a serious point of contention regarding how the app curates what users see.

TikTok is currently one of the most popular applications on the App Store. Its user base is heavily skewed toward younger demographics, which makes these allegations particularly sensitive. The company has responded to the news by saying the claims are clearly cherry-picked at the behest of trial lawyers. They argue that this narrative is used to inaccurately rewrite their history and mislead the public about their commitment to youth safety and how the platform actually works.

Looking ahead, these allegations could lead to further legal scrutiny. If the claims hold up, the company may face penalties for failing to report suspected child sexual exploitation material and for potential financial crimes related to the revenue generated. For parents and users, the next step is likely increased attention on how the company verifies age and manages paid content. The dispute highlights the ongoing tension between tech companies and regulators over how they protect young users in a digital space.

This situation underscores the complexity of modern social media. It is not just about what is posted, but how the platform manages access, revenue, and safety. As the legal process moves forward, we will see if the internal documents provide enough evidence to support the claims made by the employees. For now, the focus remains on the gap between what the company says it does and what the internal reports suggest actually happened.

Source: 9to5Mac

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