TikTok Must Face Lawsuit over 10-year-old Girl's Death, US Court Rules

A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
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TikTok Must Face Lawsuit over 10-year-old Girl's Death, US Court Rules

A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake

A US appeals court has revived a lawsuit against TikTok by the mother of a 10-year-old girl who died after taking part in a viral "blackout challenge" in which users of the social media platform were dared to choke themselves until they passed out, Reuters reported.

While a federal law typically shields internet companies from lawsuits over content posted by users, the Philadelphia-based 3rd US Circuit Court of Appeals on Tuesday ruled the law does not bar Nylah Anderson's mother from pursuing claims that TikTok's algorithm recommended the challenge to her daughter.

US Circuit Judge Patty Shwartz, writing for the three-judge panel, said that Section 230 of the Communications Decency Act of 1996 only immunizes information provided by third parties and not recommendations TikTok itself made via an algorithm underlying its platform.

She acknowledged the holding was a departure from past court rulings by her court and others holding that Section 230 immunizes an online platform from liability for failing to prevent users from transmitting harmful messages to others.

But she said that reasoning no longer held after a US Supreme Court ruling in July on whether state laws designed to restrict the power of social media platforms to curb content they deem objectionable violate their free speech rights.

In those cases, the Supreme Court held a platform's algorithm reflects "editorial judgments" about "compiling the third-party speech it wants in the way it wants." Shwartz said under that logic, content curation using algorithms is speech by the company itself, which is not protected by Section 230.

"TikTok makes choices about the content recommended and promoted to specific users, and by doing so, is engaged in its own first-party speech," she wrote.

TikTok did not respond to requests for comment.

Tuesday's ruling reversed a lower-court judge's decision dismissing on Section 230 grounds the case filed by Tawainna Anderson against TikTok and its Chinese parent company ByteDance.

She sued after her daughter Nylah died in 2021 after attempting the blackout challenge using a purse strap hung in her mother's closet.

"Big Tech just lost its 'get-out-of-jail-free card,'" Jeffrey Goodman, the mother's lawyer, said in a statement.

U.S. Circuit Judge Paul Matey, in a opinion partially concurring with Tuesday's ruling, said TikTok in its "pursuit of profits above all other values" may choose to serve children content emphasizing "the basest tastes" and "lowest virtues."

"But it cannot claim immunity that Congress did not provide," he wrote.



EV Firm Lotus Tech Slashes Annual Deliveries Forecast as EU, US Tariffs Weigh

British sports car maker Lotus unveils its new fully-electric "Emeya" Hyper-GT in New York City, US, September 7, 2023. REUTERS/Caitlin Ochs Purchase Licensing Rights
British sports car maker Lotus unveils its new fully-electric "Emeya" Hyper-GT in New York City, US, September 7, 2023. REUTERS/Caitlin Ochs Purchase Licensing Rights
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EV Firm Lotus Tech Slashes Annual Deliveries Forecast as EU, US Tariffs Weigh

British sports car maker Lotus unveils its new fully-electric "Emeya" Hyper-GT in New York City, US, September 7, 2023. REUTERS/Caitlin Ochs Purchase Licensing Rights
British sports car maker Lotus unveils its new fully-electric "Emeya" Hyper-GT in New York City, US, September 7, 2023. REUTERS/Caitlin Ochs Purchase Licensing Rights

EV firm Lotus Technology slashed its deliveries forecast for the year by more than 50% on Wednesday, citing uncertainty posed by new tariffs in the United States and the European Union.

Import tariffs imposed by the European Union, the United States and Canada on China-made EVs have added pressure on companies manufacturing their vehicles in China, adding to costs.

"After assessment of the evolving market conditions, and uncertainties posed by new tariff policies in US and EU, the company has revised its delivery target for 2024 to 12,000 units," the company said, according to Reuters.

The company is headquartered in the Chinese city of Wuhan and produces cars through a partnership with parent firm Geely .

Lotus Tech, which focuses on all-electric lifestyle vehicles, is part of British sports car maker Lotus Group, which is owned by Chinese automaker Geely and Malaysia's Etika Automotive.

The company was valued at about $7 billion in a deal with a special purpose acquisition company when it went public in February, but its value has since fallen to about $3.8 billion.

After China and Europe, the company began taking orders for the Eletre SUV in markets across the Middle East, Asia and the Americas.

Deliveries for the three months ended June 30 stood at 2,679 units, compared with 2,194 vehicles in the first quarter.

Revenue for the second quarter was $225 million, compared with $111 million a year earlier.

Lotus Tech said its net loss widened to $202 million in the April-June period from $193 million a year earlier.

Its plans to expand and entry into new regions have led to higher selling and marketing expenses, which rose 73% to $204.3 million in the quarter.