The Iowa Supreme Court has upheld a district court ruling allowing the state to move forward with a lawsuit against the operators of the TikTok app for allegedly misrepresenting its safety for children.
The state sued TikTok under the Iowa Consumer Fraud Act, arguing the company maintained a “12-plus” age rating on the app despite the presence of mature and age-inappropriate content.
TikTok argued its terms-of-service agreement is a nationwide contract and not directed specifically at Iowa consumers.
In its ruling, the Supreme Court said TikTok has entered into ongoing contractual relationships with hundreds of thousands of Iowa residents, actively curates content for Iowa users and, in exchange, collects valuable user data. The court said intentionally conducting business within a state carries both the protections of its laws and the obligation to answer in court for alleged misconduct related to those operations.
