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TikTok agrees to improve European consumer rights

Cynthia L. Herzog June 21, 2022 2 min read

TikTok will strengthen protections aimed at helping children avoid persuasive ads on the platform, Reuters reported on Tuesday (June 21).

TikTok, owned by China’s ByteDance, has faced several complaints from various consumer groups in the European Union, and the company has faced the possibility of sanctions.

In 2021, the European Consumer Organization (BEUC) said TikTok had “failed” to protect children from “hidden advertising and inappropriate content”. Following this, the company had several meetings with consumer groups and the European Commission to find solutions.

TikTok will make several changes in the future, including an option that makes it easy for users to flag ads that might get kids to buy things or get their parents to make the purchase.

Additionally, the report says branded content won’t be allowed to promote “inappropriate” products, and the company will clarify how to get rewards from its platform – with more boldly labeled paid ads.

“All social media platforms are required to follow the rules and ensure that consumers can easily identify commercial content, including when promoted by influencers,” said the Commission’s Chief Justice, Didier Reynders, in a statement, according to Reuters.

However, things might not be satisfactory on all levels. BEUC deputy chief executive Ursula Pachl said there had been “over a year” of dialogue with TikTok, but “significant concerns” remained unresolved.

TikTok said it plans to continue improving its features.

PYMNTS wrote recently that several UK TikTok influencers are quitting the platform’s e-commerce program, citing low wages, long hours and unsatisfactory products.

See also: TikTok sees exodus of influencers from UK shopping service

This shows how far the company’s live shopping concept still has to go to be on the footing of its rivals. It debuted last year in the UK, which marked the first time it was available outside of Asia. The shopping program provided access to live shopping through live broadcasts on TikTok.

The company said it wanted to “redefine the shopping culture” and that there have been good effects for small businesses, increasing revenue on the platform and finding new audiences.

It hasn’t been universally widespread – several top creators have said they’ve seen pay cuts, as well as shipping issues.

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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