TikTok Lite Rewards Program Banned in EU Amidst DSA Concerns

European data protection regulators have announced the termination of the TikTok Lite Rewards program in the European Union. The decision was made due to concerns that the program fosters user addiction and the company’s failure to conduct a preliminary risk assessment.

TikTok launched the Lite Rewards program just a few months ago in Spain and France, immediately drawing the attention of regulators enforcing the stringent European Digital Services Act (DSA). The law governs data privacy issues and features in social media applications that may cause addiction.

Under the Lite Rewards program, users earn points for completing specific tasks—liking, subscribing to other users, watching videos, and inviting friends to join TikTok. These points can be redeemed for Amazon and PayPal gift cards.

European regulators noted that the program was initiated without a thorough risk assessment and without implementing effective mitigation measures. The European Commission stated that major online platforms, such as TikTok, are required to conduct risk assessments and submit them for review before launching new programs that could significantly impact systemic risks. This case marks the first closure under the DSA.

European actions against TikTok coincide with similar measures in the United States. On August 2, authorities filed a lawsuit against TikTok and its parent company ByteDance, accusing them of violating children’s privacy rules for several years. In April, the Biden administration approved a bill that could lead to the sale of TikTok or the banning of the app in the United States.