Sep 30, 2024
FORT WAYNE, Ind. (WANE) -- The Indiana Court of Appeals has overturned an Allen County judge's ruling that dismissed a lawsuit filed by the State of Indiana against TikTok back in late 2022. The lawsuit, which is comprised of two complaints, argued TikTok engaged in deceptive practices that violated Indiana's Deceptive Consumer Sales Act (DCSA). TikTok responded with a motion to dismiss the lawsuit and the grounds that Indiana lacked specific jurisdiction over TikTok and that the State failed to make a claim of a "consumer transaction" between the company and end-users under the DCSA. An Allen Superior Court judge agreed and dismissed that lawsuit in November 2023. Allen County judge dismisses Indiana’s lawsuit against TikTok that alleged child safety, privacy concerns In Monday's ruling from the Indiana Court of Appeals, the court noted it had "little trouble" deciding that Indiana did, in fact, have "specific personal jurisdiction" over TikTok because millions of Hoosiers have downloaded the app and the company reported $46 million in Indiana-based income in the 2021 tax year. Following Monday's ruling, a spokesperson for Indiana Attorney General Todd Rokita's Office provided the following statement to WANE 15: The Indiana Court of Appeals took a common sense approach and agreed with our office's argument that there's simply no serious question that Indiana has established specific personal jurisdiction over TikTok. By earning more [than] $46 million dollars from Hoosier consumers in 2021, TikTok is doing business in the state and is therefore subject to this lawsuit. We were the first state in the nation to file suit against TikTok and look forward to continuing this fight. Indiana Attorney General Todd Rokita's Office TikTok's other argument contended that a consumer transaction requires an "exchange of money." While the Allen Superior Court judge agreed, the Indiana Court of Appeals argued that the DCSA does not include the words "exchange of money," therefore not making it a mandatory prerequisite for a consumer transaction. In this case, the Indiana Court of Appeals argues the "transaction" involves TikTok exchanging its content for personal data from people who use the app. "We reject TikTok's arguments accordingly, and we conclude that [Allen Superior Court] erred in both cause numbers when it dismissed the State's amended complaints of the theory that the State had failed to identify a requisite consumer transaction under the DCSA," part of the ruling read. The Indiana Court of Appeals did affirm Allen Superior Court's dismissal of the lawsuit for three of the four defendants, which are all based outside the U.S., but the court's overturning applies to the California-based TikTok company. Part of the Indiana Court of Appeals' ruling requires further proceedings of the State of Indiana's two original claims.
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