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TikTok sued by 14 attorneys general alleging its app is harming children’s mental health
TikTok was sued Tuesday by 14 attorneys general who allege the social media platform is misleading the public about its safety. The app, they say, is harming children’s mental health, with some kids getting injured or even dying because of TikTok’s viral “challenges.”
The lawsuits, filed Tuesday, also claim that TikTok relies on “addictive features” that keep users glued to its platform, which in turn can hurt their mental health. These features include notifications that can harm kids’ sleep patterns and video autoplay that encourages users to spend more time on the platform, without the option to turn off the autoplay function, according to the complaint.
“We strongly disagree with these claims, many of which we believe to be inaccurate and misleading. 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,” a TikTok spokesperson said in a statement to CBS MoneyWatch.
“We provide robust safeguards, proactively remove suspected underage users, and have voluntarily launched safety features such as default screentime limits, family pairing, and privacy by default for minors under 16,” the spokesperson said, adding, “We’ve endeavored to work with the Attorneys General for over two years, and it is incredibly disappointing they have taken this step rather than work with us on constructive solutions to industrywide challenges.”
The lawsuits add to other challenges facing TikTok, which is also fighting a potential ban that was signed into law earlier this year by President Joe Biden. The law, which the social media service has argued is unconstitutional and should be overturned, would require TikTok’s owner, the China-based company ByteDance, to either divest the business or face a ban of the service within the U.S.
At the same time, TikTok is also facing charges from various states and children’s advocates about privacy issues and their impact on kids and young adults.
In the October 8 lawsuits, the attorneys general cite TikTok’s popular “challenges” as harmful to children, promoting dangerous behaviors that have caused injuries, some fatal.
“Challenges are campaigns that encourage users to create and post certain types of videos on TikTok, such as a video of a user performing a certain dance routine or a dangerous prank,” alleges the lawsuit from New York Attorney General Letitia James. “Challenge videos are a cornerstone of the platform and are among the most popular videos on the platform.”
The lawsuit added, “Numerous teen users have injured or even killed themselves or others participating in viral pranks to obtain rewards and increase their number of ‘likes,’ views, and followers, a foreseeable consequence of TikTok’s engagement-maximizing design.”
In one case, a 15-year-old boy died in Manhattan while subway surfing, a trend where people ride on top of a moving subway car. The lawsuit notes that his mother found TikTok videos about subway surfing in his account after he had died.
The attorneys general who are suing TikTok represent the following states:
- California
- Illinois
- Kentucky
- Louisiana
- Massachusetts
- Mississippi
- New Jersey
- New York
- North Carolina
- Oregon
- South Carolina
- Vermont
- Washington
- District of Columbia
Each attorney general filed a lawsuit in their own jurisdiction.
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3 big risks of waiting for gold prices to fall
Gold has been a standout performer in the financial markets this year, with prices climbing rapidly and setting new records. At the start of the year, gold was trading at just above $2,000 per ounce, but its value has soared past multiple milestones in recent months, and, today, gold prices hover above $2,650 per ounce. This upward trend has resulted in big rewards for early investors who saw the precious metal as a safe haven in uncertain economic times. Those who got in before prices surged are now enjoying substantial gains.
For investors who have yet to buy gold, though, the current high prices present a dilemma. Many are hesitant to jump in at a time when the price is near a record high and are instead waiting in hopes that prices will retreat, allowing them to purchase gold at a discount. This cautious approach makes sense in traditional investing logic. After all, buying low and selling high is the golden rule. But in the case of gold, waiting for lower prices may not be as wise as it seems.
While it’s tempting to wait for a price drop, the reality is that this gold investing strategy could be fraught with risks — especially right now. Below, we’ll analyze why.
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3 big risks of waiting for gold prices to fall
Waiting for gold’s price to drop could be a risky bet for the following reasons:
Gold’s price may not drop substantially
One of the primary risks in waiting to buy gold at a lower price is the possibility that the anticipated dip may never happen — or may not be as substantial as you hope. Recent trends in the gold market have shown that while gold’s price may experience short-term fluctuations, these dips have not been drastic. Part of the reason is that gold tends to be highly resilient historically, particularly in times of economic uncertainty, like what we’re facing today. Economic issues tend to push the price of gold higher rather than lower.
Even when gold prices have dipped recently, those drops have been short-lived, bouncing back quickly. In some cases, these dips have been quickly followed by the price of gold reaching new highs. This pattern makes it difficult to predict the market. So, waiting for a significant drop could mean missing out on the chance to buy gold at all. If the price continues to rise — and analysts are already predicting that it will — those waiting for a cheaper entry point could be left empty-handed.
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Your portfolio could be vulnerable without it
Gold has long been considered a hedge against stock market volatility, economic downturns and inflation. And while the stock market has performed well recently, it has experienced heightened volatility in recent months. This matters because when the market underperforms or experiences wild fluctuations, gold tends to shine as a stable store of value. This makes gold an essential component of a well-balanced investment portfolio, providing a level of protection against broader market risks.
If you delay investing in gold while waiting for lower prices, you may leave your portfolio vulnerable to future market shocks, should they occur. Gold provides a critical layer of security during such times, and without it, your portfolio may be overly exposed to short-term market shocks that gold could have helped to cushion.
You could miss out on quick returns
While gold is often viewed as a long-term investment, it also presents opportunities for short-term gains, particularly in today’s rapidly rising market. While the price is currently high, many analysts believe that gold’s price is far from reaching its peak — and some experts predict that it could soon hit $3,000 per ounce or higher. If this upward trend continues, buying now — even at the current high prices — could result in significant profits in the near future.
By waiting for a price drop, though, you may miss out on these potential gains. Market timing is notoriously difficult, and even if gold prices were to dip slightly, the price could quickly rebound, leaving those who waited with no opportunity to benefit from the current rally. Investing in gold now could allow you to take advantage of the potential for short-term profits while also securing a position in a valuable long-term asset. And if gold continues to climb, today’s prices may soon seem like a bargain.
The bottom line
Investing in gold has long been a strategy for preserving wealth and protecting portfolios against volatility, so it makes sense to add it to your portfolio, but if you’re waiting for lower prices to enter the market, that may not be the most prudent approach. The price of gold may not drop substantially and delaying your investment could leave your portfolio vulnerable to stock market fluctuations. You might also miss out on an opportunity for both short- and long-term profits. So, given the current trajectory of gold prices and the uncertain economic environment, now may be the right time to consider investing in gold rather than waiting for a dip that may never come.