TikTok fights to maintain reputation amid Ofcom investigation, AI content avalanche - AltcoinDaily.co
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TikTok is under formal investigation by the UK’s internet watchdog over how children are tricking the age filters on the platform.

Ofcom says that TikTok’s approach to age verification is not enough, as it uses “age inference” to estimate age through the behavior on the app. The regulator says it lacks what the law requires.

Kate Davies, Ofcom’s group director for strategy and research, told BBC Radio 4’s Today program.

“We have serious doubts about them, and so we have launched an investigation into TikTok.” Age inference, she added, “is not in our guidance as an effective method of age check.”

TikTok risks fines of up to 10% of global revenue

TikTok could be fined up to 10% of its global revenue if found to have broken the rules. A spokesperson said the company is “confident” it meets its Online Safety Act obligations and has spent billions on safety in the eight years since it launched in the UK.

As reported by Cryptopolitan recently, TikTok also had to remove over 4 million under-16 accounts in Indonesia.

Brands hit back at AI videos on TikTok shop

TikTok Shop is at the center of a dispute over AI-generated product videos. The platform’s own tools let sellers produce computer-generated clips featuring virtual models demonstrating products, and allow commissions to be earned from them. Real-life creators say this is cutting into their income.

“I create ads for products that I have in person, real reviews, showing the actual product,” said Rosemarie Soma, an affiliate creator. “It’s very frustrating for affiliates because these [AI] videos are getting ad spend and are making sales.”

SharkNinja sent a memo to its affiliate sellers, obtained by the Wall Street Journal, saying TikTok’s AI Video Maker is banned under its content policy and that anyone using it will lose their commissions.

Chief commercial officer Neil Shah said: “We didn’t want an AI-generated Shark vacuum cleaning an AI-generated floor. We want real consumers seeing real products being used by real people.”

TikTok Shop sales in the US are expected to reach $23.41 billion this year, up 48%, ahead of Target and Costco, according to eMarketer. The affiliate program has grown from 2.3 million creators in 2024 to 11.3 million this year, including 945,000 in the US, according to Charm.io.

Creator Daria Simhony, who posts at least one AI-generated video per day, said: “I can create whoever you need me to.” Lauren Lyster of Go Fish Digital said brands using the open affiliate option take on more risk. “If you open up the floodgates, you maybe need to be a bit more risk-tolerant, but you’re going to get a lot more scale,” she said.

One creator posted AI videos promoting Rare Beauty, the cosmetics brand founded by Selena Gomez, with no connection to the company. Rare Beauty said it does not work with AI-generated content, though its products appear in TikTok’s open affiliate plan.

SharkNinja’s Shah acknowledged his company has little power to stop it. “Our only ask is, use the real product,” he said.

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