Supreme Court Rules TikTok’s Security Risks Outweigh Free Speech Rights
Unless ByteDance Ltd., China-based owner of TikTok, sells the app, it appears headed for a ban in the U.S. starting Sunday, Jan. 19. The Supreme Court ruled unanimously on Friday that TikTok’s risk to national security outweighs the free speech rights of its 170 million American users, some of whom depend on it for their incomes. Many franchise developers, franchisors and franchisees have used the enticing app to ramp up interest in their brands.
TikTok serves as an especially effective marketing app because its videos last just a few seconds, making them quick to produce, post and view. U.S. adult users spend an average of nearly 54 minutes per day on TikTok, according to the search engine optimization (SEO) specialist Backlinko.com; the app has 1.04 billion worldwide users and posted annual revenue of $16 billion in 2023.
“There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community,” the court wrote in an unsigned opinion quoted by NPR. “But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary. We conclude that the challenged provisions do not violate petitioners’ First Amendment rights.” TikTok attorney Noel J. Francisco didn’t dispute the security threat but argued those concerns could be addressed effectively in ways that stopped short of ordering the app to “go dark,” The New York Times reported.
“Without doubt, the remedy Congress and the President chose here is dramatic,” Justice Neil Gorsuch wrote in his opinion. The possibility that China, through TikTok, could access “vast troves of personal information about tens of millions of Americans” led him to uphold the new law, he added.
What Happens Next?
TikTok announced late Friday that if the Biden White House doesn’t intervene, the app will go dark on Sunday, meaning it will no longer function at all, CNBC and other news media reported. The Associated Press had said Friday morning that the app was not expected to vanish as soon as the law took effect, making new-user downloads and updates illegal. Eventually those prohibitions would have made the app unworkable, the Justice Department said in court filings. App store operators such as Apple and Google face penalties of up to $5,000 per user if they continue distributing and updating TikTok, under the new law.
President Biden signed the law last spring after Congress passed it with wide bipartisan support. The law had permitted a 90-day pause in restrictions if there had been progress toward a TikTok sale before Jan. 19. Solicitor General Elizabeth Prelogar, who defended the law at the Supreme Court, said she’s unsure whether a prospective sale now — after the high court’s ruling and with the deadline imminent — might pause the ban.
ByteDance has maintained it will not sell, but President-elect Donald Trump may try to save TikTok. “Congress has given me the decision, so I’ll be making the decision,” he told CNN shortly after the Supreme Court ruling was announced. U.S. investors, including Trump’s former Treasury Secretary Steve Mnuchin and billionaire businessman Frank McCourt, have expressed interest. Their consortium, which includes Shark Tank television show panelist Kevin O’Leary, has not revealed details of its offer.
Impact on Franchise Marketing to Gen Z
Content creators worry that the app’s demise could hurt their livelihoods. Desiree Hill, owner of Crown’s Corner mechanic shop in Conyers, Ga., told AP she’s “very scared about the decrease that I’m going to have in reaching customers and worried I’m going to potentially lose my business in the next six months.”
Franchise advocates of all types have used TikTok in marketing. It’s particularly potent in reaching Gen Z, with about 70% of users being 18 to 35 years old, data collection specialist SOAX noted in November 2024. About 60% of users are women, FranchiseWire contributor Michelle Hummel wrote. Hummel, a digital marketing specialist, pointed out that TikTok claims two-thirds of its users are likely to buy something while on the platform and are two times likelier than users of traditional social platforms to recommend a product or service that TikTok introduced them to.
TikTok has become a powerful franchise marketing tool for attracting Gen Z, not only drawing them into shops and cafes to make purchases but also sparking their interest in franchise ownership. Franchisors have been using the platform to spotlight their brands with behind-the-scenes content, viral challenges, and unique menu items that are eye-catching and shareable. TikTok’s storytelling capabilities have allowed brands to highlight franchise success stories, “day in the life” content, and the freedom of being your own boss. As FranchiseWire contributor Laura Darrell noted in April 2023, Gen Z’s entrepreneurial spirit makes them prime candidates for franchise ownership.
Without TikTok, many franchise marketers face a difficult pivot. FranchiseWire columnist Jack Monson noted in April 2024 that development teams for Hand & Stone Massage and Facial Spa, The Joint Chiropractic and BELFOR Franchise Group, among others, have used TikTok’s wide reach and potent algorithm to woo new audiences. “Instagram Reels, YouTube Shorts and LinkedIn, while far-reaching, do not offer the same algorithmic advantage that makes TikTok a winner for many marketers. The transition will likely involve resetting content strategies to align with different platform dynamics,” wrote Monson, president of franchise marketing company Brand J.
