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Chinese State Media Calls TikTok-Oracle Deal “Reasonable” as Trump Signals Approval

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  • On Friday, the United States Commerce Department issued an order that would ban U.S. downloads of TikTok and WeChat starting Sunday night.
  • The order for TikTok was delayed for one week on Saturday after President Donald Trump gave his preliminary approval on a deal between TikTok and the software company Oracle.
  • A federal judge also issued a temporary injunction Sunday against the WeChat ban, which would have largely destroyed the app’s functionality.
  • Oracle and Walmart have since released more details of the deal, including that TikTok Global will likely pay $5 billion in U.S. taxes. This does not seem to be the same as a commission from the deal, even though Trump suggested such.
  • On Monday, Chinese state media called the deal “unfair” on ByteDance, TikTok’s parent company. However, it also described it as “reasonable,” suggesting the Chinese government may approve the deal.

U.S. and China Signal Support for Deal

What began as a tumultuous weekend for TikTok ended with both the U.S. and Chinese governments potentially signaling approval of its deal with Oracle. 

Last week, TikTok’s parent company, ByteDance, struck a deal with Oracle to avoid a U.S. ban. On Monday, Chinese state media called the deal “more reasonable to ByteDance,” and said it’s less costly than a shutdown.

“The plan shows that ByteDance’s moves to defend its legitimate rights have, to some extent, worked,” it added.

While not officially confirmed, this seems to suggest that the Chinese government may approve the deal. 

It also came off the heels of Saturday, when President Donald Trump, after having suggested unhappiness with the deal last week, said he has given his approval “in concept.” He will still need to officially sign off on it before the deal is set into motion.

Because of that, the U.S. Commerce Department staved off a download ban that was set for Sunday, now pushing it back to this coming Sunday, Sept. 27.

Some Republicans, such as Senator Marco Rubio (R-Fl.), have still expressed concern because ByteDance won’t be handing over its secretive algorithm as part of the deal.

What’s in the Deal?

On Saturday, Oracle released more details of its deal with TikTok. Under it, Oracle and Walmart would take a combined 20% stake in TikTok Global.

Still, there’s been much back and forth over how much control ByteDance, will have under the agreement. For his part, Trump has claimed that TikTok Global will “be a brand new company… It will have nothing to do with China.”

However, ByteDance has maintained that it will retain 80% of the stake. The discrepancy here seems to be because 40% of ByteDance is owned by U.S. venture capital firms. Therefore, Trump could technically claim that TikTok Global will be majority-owned by U.S. money.

Trump doubled down Monday and said that he would not approve the deal if ByteDance retained ownership. He added that the Chinese-owned company will “have nothing to do with it, and if they do, we just won’t make the deal.”

Later, Oracle announced that ByteDance will not have any stake in TikTok Global, though this statement heavily conflicts with what is being reported in China.

“Upon creation of TikTok Global, Oracle/Walmart will make their investment and the TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TikTok Global,” the company said.

According to Walmart and Oracle, if this deal goes through, TikTok Global will pay $5 billion in new tax dollars to the U.S. Treasury over the next few years. As both companies noted, this is just a projection of future corporate taxes, and that estimate could change.

The water around that $5 billion figure was later muddied as Trump claimed that TikTok Global would be donating “$5 billion into a fund for education so we can educate people as to [the] real history of our country — the real history, not the fake history.”

To be clear, Trump is referring to his plans to establish a “patriotic education” commission.

On Sunday, ByteDance said in a statement that this was the first it had heard about a $5 billion education fund.

In fact, TikTok Global never promised to start an education fund. Instead, it promised to create an “educational initiative to develop and deliver an AI-driven online video curriculum to teach children from inner cities to the suburbs a variety of courses from basic reading and math to science, history and computer engineering.” 

That initiative doesn’t seem to have anything to do with that $5 billion tax figure. Since he began pursuing a ban, Trump has vowed that the U.S. will receive some form of commission from a deal with TikTok. As far as it is known, this $5 billion figure is also not that commission.

As previously reported, this deal will allow Oracle to host TikTok’s user data on its cloud service and review TikTok’s code for security. According to Treasury Secretary Steven Mnuchin, it would also shift TikTok’s global headquarters from China to the U.S.

On top of that, TikTok’s board members would reportedly have to be approved by the U.S. government, with one being an expert in data security. That person would also hold a top-secret security clearance.

Commerce Department Announces Download Ban

Friday seemed like the beginning of the end for TikTok. That morning, the Commerce Department issued an order that would ban U.S. downloads of not only TikTok but also WeChat starting Sunday night.

Both bans were a result of concerns the Trump administration has that ByteDance and WeChat’s parent company, Tencent, are either already giving or could give U.S. user data to the Chinese government.

The Trump administration has repeatedly said that both apps pose a national security threat.

TikTok and ByteDance have consistently denied these claims, saying that U.S. user data is stored domestically with a backup in Singapore. WeChat, for its part, has also made similar statements.

The download ban was announced in response to two Aug. 6 executive orders from Trump. Those orders ban any U.S.-based transactions with TikTok and WeChat starting on Sept. 20, which is why the Commerce Department set the deadline for this past Sunday.

While this ban would have been much more restrictive for WeChat because a large part of its functionality relies heavily on in-app transactions, for TikTok at least, it would only affect new downloads and updates to the app.

“So if that were to continue over a long period of time, there might be a gradual degradation of services, but the basic TikTok will stay intact until Nov. 12,” Commerce Secretary Wilbur Ross told Fox Business on Friday.

“If there’s not a deal by Nov. 12, under the provisions of the old order, then TikTok would also be, for all practical purposes, shut down.” 

What Happens on Nov. 12?

Ross is referring to another executive order, this one signed on Aug. 14. Notably, it gives ByteDance 90 days to divest from its American assets and any data that TikTok had gathered in the U.S. As Ross pointed out, that requirement could be satisfied if a deal is reached before the deadline.

If that doesn’t happen, the TikTok app could begin to see lags, lack of functionality, and sporadic outages.

However, it’s not just the U.S. One of the big questions that loomed after Oracle and ByteDance confirmed their deal last week was whether or not China would also need to approve it. ByteDance later confirmed that it will need the confirmation of the Chinese government, despite the deal not involving a technology transfer. 

Downloads Soar and TikTok Sues

On Friday, downloads for both apps soared. TikTok was downloaded nearly a quarter of a million times that day, up 12% from the previous day. WeChat was downloaded 10,000 times, up 150%.

The same Friday, TikTok as a company criticized the Commerce Department order, saying it had already committed to “unprecedented levels of additional transparency.”

TikTok added that the order “threatens to deprive the American people and small businesses across the US of a significant platform for both a voice and livelihoods.”

Later Friday, TikTok sued the Trump Administration to stop the download ban. 

On Sunday, a federal judge also halted the download ban for WeChat with a preliminary injunction. The injunction additionally blocks the Commerce Department’s attempt to bar transactions on the app.  

The Commerce Department responded by saying that it’s preparing for a long legal battle.

TikTokers: “Scared, angry, and confused”

“I’ve mostly just been feeling scared, angry, and confused,” TikToker Isabella Avila, known online as onlyjayus, told Rogue Rocket on Monday. “Those are just the main things.” 

Avila has amassed a following of 8.7 million followers on TikTok in a relatively short amount of time. She’s also gained about half a million followers on YouTube and Instagram each.

A couple of months ago, Avila said she thought a potential ban was all just talk; however, as the situation progressed, she said she became more worried.

While she said that she personally thought her career could survive a TikTok ban (thanks in part to a Netflix podcast deal), she added, “The people in-between a 100,000 to a million [followers], they have a platform right now, and if TikTok’s were to be gone, their platform’s pretty much gone if they haven’t built an audience on anything else. 

“This is where we go to express ourselves,” she said. “This is where we go to make videos. I don’t know, TikTok gave everybody a chance to kind of get famous and have a following. That’s what people liked about it. YouTube, it’s really hard to get followers and subscribers. TikTok was a lot easier.” 

Avila also expressed that a ban wouldn’t just be detrimental to creators. 

“I feel like my generation needed an app,” Avila said. “There was Instagram and Twitter, but it was kind of like for the millennials. Gen Z didn’t really have an app, and TikTok kind of fit that spot, so if TikTok’s gone, I don’t know, I feel like Gen Z isn’t really going to have a place.” 

Avila now says she is largely hopeful that TikTok will not be banned in the U.S.

See what others are saying: (The Washington Post) (NBC News) (Axios)

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Child Influencers on YouTube Are Increasingly Promoting Junk Food, New Study Finds

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  • A new study that looked at food promotions among the top five kid influencers on YouTube in 2019 found that 94% of food featured on the channels were junk food items.
  • The study is the first-ever done regarding kid influencers and food product placement.
  • Among other influencers, the study found that Ryan Kaji of Ryan’s World has often promoted unhealthy food, sometimes without properly disclosing that the content was an ad.
  • Numerous studies have found that children are much more susceptible to advertising. According to the new report, coded advertising that blends with the show is especially effective, a practice seen in many kid influencer videos.
  • The kinds of advertising noted in the study have long been banned on children’s TV programs, and now some are calling for similar regulations on YouTube.

New Study Findings

YouTube’s top child influencers have been increasingly promoting and marketing junk food to their young viewers, according to a new study published Monday by the journal Pediatrics.

According to the authors of the study, it is the first-ever of its kind that has examined “the extent to which kid influencers include food and beverage product placements in their YouTube videos.”

To conduct the study, researchers identified the top five most-watched kid influencers in 2019, and then searched for “50 of their most-watched videos and 50 of their videos that featured food and/or drinks on the thumbnail image of the video.”

In the sample of 418 videos met the search criteria, a total of 179 —  nearly 40% — featured food or drinks, and of those products, the vast majority were unhealthy.

According to the study’s findings, 90% of all food and drink shown in the kids’ videos were unhealthy branded items like McDonald’s, followed by 4% of unhealthy unbranded items like hotdogs. Both healthy branded and unbranded food and drink composed just over 5% of all products featured.

Those numbers are particularly concerning because according to the researchers, just the 179 videos that featured food racked up 1 billion views and over 16 million impressions for those food and drink products.

Ryan’s World

The findings of the study are highly significant, especially as the videos cited come from kids who have a massive influence on the platform, like 8-year-old Ryan Kaji of Ryan’s World.

Not only is Ryan easily the largest child influencer on YouTube, he is also one of the largest creators on the platform period. According to Forbes, he was the highest-earning YouTuber in 2019, bringing in an estimated $26 million last year alone.

In addition to his nearly 27 million subscribers, according to the Pediactrics study, his videos also account for over 64% of all views on every video ever produced by the top five child influencers analyzed.

Ryan’s scope is specifically relevant when it comes to the promotion of unhealthy food. According to The New York Times, some of the brands Ryan has been paid to promote include fast-food chains like Chuck E. Cheese, Lunchables, Hardee’s, Carl’s Jr., and others.

For example, both The Times and the Pediatrics study noted that one of his most popular videos shows him pretending to be a cashier at McDonald’s. In it, he wears a hat with the McDonald’s logo, serves plastic McDonald’s products to one of his toys, and then eats a McDonald’s Happy Meal. That video alone has been viewed nearly 95 million times.

Notably, Ryan’s World has been accused of not properly disclosing sponsorships in the past– including fast-food ads. Just last year, several senators accused the channel of running ads for Carl’s Jr. without disclosing that they were sponsored commercials and called on the Federal Trade Commission (FTC) to investigate.

Other groups have also made similar accusations against Ryan’s World, but it is by no means alone. To make matters more complicated, the authors of the Pediatrics study were also unable to tell when child influencers had been paid to promote the unhealthy products because they were not always clearly disclosed.

The FTC requires influencers to disclose any and all paid promotions, but as The Time’s notes, “critics say the policy is rarely enforced, and that influencers often ignore it.”

Other Issues

When it comes to kid influencers, the lack of proper disclosure is distinctly alarming because of the way these promotions are already ingrained in these child-targeted videos.

“The way these branded products are integrated in everyday life in these videos is pretty creative and unbelievable,” Marie Bragg, one of the authors of the study explained. “It’s a stealthy and powerful way of getting these unhealthy products in front of kids’ eyeballs.”

Other experts also noted that the power of these stealthy promotions is also amplified by the fact that parents may not realize or understand that their children are watching advertisements for fast food.

“These videos are incredibly powerful. Very busy parents may take a look at them and think that it’s just a cute kid talking enthusiastically about some product and not realize that it’s often part of a deliberate strategy to get their children excited about toys, or in the case of this study, unhealthy food,” said Josh Golin, the executive director of the Campaign for a Commercial-Free Childhood.

“Young children view the stars of these videos as peers and friends and don’t understand that the reason YouTube stars like Ryan are so enthusiastic about products featured in there is because they are stealth marketers,” he added.

That last point is particularly noteworthy because young kids are especially susceptible to marketing. Studies have shown that children cannot distinguish between commercials and cartoons until they are eight or nine years old and that they are more likely to prefer junk food after seeing ads for them.

So when those ads are integrated into the videos kids are watching without any kind of disclosure or differentiation, everything just gets blended together even more, which can be especially potent when it comes to YouTube videos.

“My concern is that these ads may be like TV commercials on steroids,” said Bragg. “Kids watch on autoplay, which means they’ll see the same type of programming over and over again. Instead of 10 minutes of ads throughout a 30-minute TV show, they can end up seeing the same product over and over again.”

The idea that products promoted by children on YouTube could be an even more effective marketing technique than normal television ads targeted towards children is specifically distressing because that kind of advertising is in fact illegal on television.

For years, the FTC has long banned what is known as “host selling” on children’s television, which is where characters or hosts on a show try to sell products in commercials that air during those programs. However, those rules do not apply to YouTube, where hosts and characters can promote products during their shows.

While that practice has become commonplace, the issue becomes stickier when it comes to kids.

Next Steps

With these growing concerns, many people — including the authors of the study — have been calling for more regulation.

Some have specifically pointed to a piece of legislation proposed in March by Senators Ed Markey (D-Ma.) and Richard Blumenthal (D-Ct.) which, among other things, would limit what they called “manipulative” advertising, like influencer marketing aimed at kids. 

Even without legislation, the authors of the study also hope that the new awareness around kid influencers and junk food product placement brings change to the industry.

In a statement to The Times, Sunlight Entertainment, the production company for Ryan’s World, said that the channel, “cares deeply about the well-being of our viewers and their health and safety is a top priority for us. As such, we strictly follow all platforms terms of service, as well as any guidelines set forth by the FTC and laws and regulations at the federal, state, and local levels.”

“As we continue to evolve our content we look forward to ways we might work together in the future to benefit the health and safety of our audience,” the company said, adding that Ryan’s World welcomed the findings of the study.

However, without set regulations in place, it is unclear if Ryan’s World and other kid influencer channels will be held accountable, especially given their alleged track record of disobeying existing rules.

See what others are saying: (The New York Times) (CNN) (U.S. News & World Report)

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Mr Beast Defends Charli and Dixie D’Amelio Following Tournament Win Backlash

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  • Mr Beast held a trivia tournament Saturday where creators competed against each other for $300,000 to give to their fans.
  • Charli and Dixie D’Amelio won the competition, however, many accused them of having an unfair advantage because they were allowed to compete as a team and had their parent’s beside them as well.
  • Some online even suggested that the family may have been cheating through the use of phones or people off-camera.
  • Mr Beast said fans should be mad at him, not the family, since it was his decision to allow multiple people on a team. Still, he noted that the tournament was just for fun and promised to make teams equal in future competitions.

Mr Beast Hosts Creator Tournament

Internet users lashed out at TikTok stars Charli and Dixie D’Amelio on Saturday, accusing them of cheating in YouTuber Mr Beast’s trivia competition.

Mr Beast, whose real name is Jimmy Donaldson, held his latest influencer tournament that same day, following the success of his Rock Paper Scissors charity steam earlier this year. During the trivia event, 24 creators competed against one another for $300,000 to give to their fans.

Contestants included the likes of Addison Rae, Bretman Rock, KSI, Safiya Nygaard, Jaiden Animations, and tons of others, with the D’Amelio sisters ultimately being declared the winners.

However, many were unhappy with that, saying they cheated and had an unfair advantage. This is because the sisters were allowed to compete as a team and also brought their parents along with them.

It is worth noting that only Dixie competed in the final round of trivia against comic book artist and YouTuber ZHC. Still, many felt like the 4 on 1 match-ups weren’t fair and even suggested that the family was cheating through the use of phones or people off-screen.

Mr Beast Defends D’Amelio Family

Mr Beast eventually had to try and diffuse the situation after seeing the family faced a slew of backlash online.

“I see some people mad that I let multiple people compete on a single team in the trivia tournament!” he wrote. “Honestly, the tournament was just for fun and to bring the community together and I’d appreciate if you were to get mad at anyone, get mad at me. It was my decision lol”

“The criticism is noted and I’ll definitely keep all the teams the same size next time! 100% my b Red heart,” he continued.

Fellow YouTubers expressed a similar sentiment about the competition being all for fun, with the money ultimately going to fans in need.

See what others are saying: (Dexerto) (Insider) (HITC)

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Tana Mongeau’s “Booty for Biden” Promotion Sparks Legal Concerns

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  • YouTube star Tana Mongeau has come under fire for offering nude photos to fans who proved they voted for Democratic presidential nominee Joe Biden.
  • Some said it could be considered vote buying, which is a felony. Others said it encourages fans to take ballot selfies as proof, which are illegal in several states.
  • Mongeau eventually added, “by proof I just meant tell me,” before ultimately deleting the post and writing, “in all seriousness if you can vote please do.”
  • She did, however, claim that she received “tens of thousands of messages” from people telling her they voted for Biden.

Tana Launches #BootyForBiden Campaign

YouTuber Tana Mongeau promised to send nudes to Joe Biden supporters on Wednesday as part of her “Booty for Biden” campaign, which has now raised legal concerns.

Mongeau advertised the strategy in a Tweet, writing: “if you send me proof u voted for Biden I’ll send you a nude for free.” 

Image
@Tanamongeau

That post, of course, was accompanied by a link to her OnlyFans page and the hashtag #bootyforbiden. However, the problem is that people said she was breaking the law and asking her fans to do the same.

Some say what she did could be considered vote buying, which is a felony punishable by a fine and up to two years behind bars. Because she was asking fans for proof of their vote, others said she was also encouraging ballot selfies, which are illegal in several states. 

2016 map that shows where voter selfies are illegal. Source: Vox

Tana Deletes Post

Mongeau eventually clarified what she meant by proof, saying, “I just meant tell me.”

@Tanamongeau

She then ended up deleting her initial offer altogether, following up with, “in all seriousness if you can vote please do… not voting is voting and the world is scary.”

It’s unclear what the response to her post was like on her end, but she did later claim that her campaign “broke Tana Uncensored,” in an Instagram post that featured a NSFW photo of her with the Democratic candidates face photoshopped over hers.

“Tana Uncensored messages are broken, and the point has been made: I got tens of thousands of messages of people telling me that they willingly voted for Joe Biden,” Mongeau added in an Instagram Story.

“It’s the best thing ever. You don’t need my ass to make you go vote. So go vote because you wanna see a change in this country just like me, and thank you to everyone who joined me today. Booty for Biden.”

For now, it seems like the YouTuber is trying to join the list of stars encouraging their fans to vote, but the way she’s been doing it might be a problem.

Tana Loses YouTube Verification

Reports surfaced this weekend pointing out that Mongeau has just lost her YouTube verification check. As of now, there’s no confirmed reason, evidence, or explanation for this, but some internet users and media outlets are suggesting it could have to do with the controversy.

Neither Mongeau nor the platform has commented on the verification change so it’s tough to say if they are connected.

Meanwhile, fans online are offering up other explanations, saying it could be because she changed her name back from Tana Paul to Tana Mongeau. 

See what others are saying: (TMZ) (Cosmopolitan) (Daily Dot)

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