A coalition of over a dozen state attorneys general from both major political parties is set to initiate legal action against TikTok on Tuesday. One of the lawsuits accuses the platform of misleading users by asserting that its app is safe for children, despite its "addictive" characteristics, and of allegedly running an unlicensed money transmission operation.

The states involved in the lawsuit include New York, California, and the District of Columbia.

Attorney General Brian Schwalb of the District of Columbia stated in an interview with CNBC, "Our lawsuit aims to hold TikTok accountable for the harm it causes to children in D.C."

The complaint outlines various "profound" mental health risks associated with excessive TikTok usage among teens and children, such as depression, anxiety, sleep deprivation, and body dysmorphia.

Schwalb referred to the app, which enables users to create, share, and view short videos, as "digital nicotine," asserting that TikTok is "deliberately attempting to addict young users to its platform."

He emphasized that the app "causes significant harm to an entire generation of youth."

"In addition to prioritizing profits over children's well-being, TikTok's unregulated and illegal virtual economy allows the most sinister elements of society to exploit vulnerable individuals," Schwalb remarked. "The company is aware of these issues and has chosen to overlook them. This lawsuit aims to put a stop to its illegal, deceptive, and predatory practices."

TikTok has not yet responded to requests for comments regarding the lawsuits, but in a statement on X, the company expressed, "We strongly disagree with these allegations, many of which we consider to be inaccurate and misleading."

"We take pride in and remain committed to our efforts to protect teens, and we will continue to enhance and refine our product," TikTok added. "We implement strong safeguards, actively remove suspected underage users, and have voluntarily introduced safety features such as default screen time limits, family pairing, and privacy settings for minors under 16."

We have made significant efforts to collaborate with the Attorneys General for over two years, and it is profoundly disappointing that they have chosen this course of action instead of engaging with us to develop constructive solutions to the challenges facing the industry.

More than half of young individuals aged 13 to 17 in the United States utilize the app. Globally, TikTok boasts over a billion active users.

Schwalb's lawsuit, which claims breaches of D.C. consumer protection laws, accuses TikTok of "utilizing algorithms and manipulative design elements" to captivate young users by stimulating dopamine bursts in their impressionable minds.

The lawsuit filed in D.C. Superior Court asserts, "TikTok is aware that its design features enhance the app's addictiveness and prolong user engagement."

"While this may benefit the company's bottom line, it poses serious risks to children."

The complaint further states that in 2019, the company launched "two new hazardous features": a live-streaming option known as TikTok LIVE and a virtual currency system referred to as TikTok "Coins."

The lawsuit claims, "TikTok is distinctive for its use of Coins — an unregulated virtual currency." Users purchase Coins to send virtual 'Gifts' during LIVE broadcasts, which streamers can convert into real money. TikTok encourages users to go LIVE by offering these financial incentives, stating that 'the more popular [their] content becomes,' the greater the rewards."

According to the suit, TikTok "generates significant revenue" from its Coins, imposing commissions of up to 50% on each transaction.

The app's process for cashing in and out of its virtual currency is described as "a virtual money transmission system" that violates D.C. law by not securing the necessary money transmitter license, as alleged in the lawsuit.

The lawsuit filed by Schwalb states, "While LIVE, which encompasses both live streaming and Gifts, currently mandates a minimum age of 18, TikTok is aware that its insufficient age verification processes encourage minors in the U.S. to misrepresent their age to gain access."

Additionally, the complaint claims that the design of LIVE, which includes Coins and Gifts, "facilitates other significant dangers to minors, such as sexual exploitation."

According to a press release from Schwalb's office, "TikTok is fully cognizant that these features contribute to an environment where children are frequently subjected to sexual exploitation by users, yet the company has opted to ignore this issue in pursuit of greater profits."

TikTok's U.S. headquarters are located in Los Angeles, and the company also has a notable lobbying presence and an office in Washington, D.C.

The lawsuit highlights TikTok's recent collaboration with the NHL's Washington Capitals, which will see the TikTok logo displayed on the team's road game jerseys for the upcoming season.

The suit seeks a permanent injunction against TikTok for violating consumer protection laws, as well as restitution for users and civil penalties.

These lawsuits, initiated by Schwalb and other state attorneys general who are pursuing separate legal actions across the United States, arise during a particularly challenging legal period for the company, which is owned by the China-based ByteDance.

In September, TikTok's legal representatives contended in a federal appeals court that a proposed law, which would prohibit the app by January 19 unless ByteDance secures a non-Chinese buyer, is unconstitutional as it infringes upon the First Amendment rights of TikTok users.

The legislation was approved by both the House and Senate in April, following discussions among Congress members and other stakeholders who expressed concerns that the app represents a national security threat to the United States.

They specifically argued that the data it gathers could potentially be exploited by adversaries in Beijing in the event of a conflict between the two nations.

These lawsuits are part of an ongoing series of civil actions initiated by state attorneys general against social media platforms, alleging detrimental effects on children and other users of their widely used applications.

In September, New Mexico Attorney General Raul Torrez filed a lawsuit against Snap, claiming that its app Snapchat encourages and disseminates "illicit sexual material involving children" and also facilitates "sextortion and the trafficking of children, drugs, and firearms."

Torrez additionally took legal action against Meta, the parent company of Facebook, for allegedly allowing the exploitation of minors.

In July, Meta reached a settlement of $1.4 billion to resolve a lawsuit brought by Texas Attorney General Ken Paxton regarding Facebook's unauthorized collection of biometric data.