TikTok Star’s $400 Million Contract Sparks Parental Demand for Refund

Japanese Family Sues TikTok and Apple Over $510K in Unauthorized Child Purchases

Kyoto, Japan – A family in Kyoto has launched legal proceedings against TikTok operator Bytedance Japan and Apple Japan, alleging negligence that allowed a 10-year-old child too accumulate over 4.6 million yen (approximately $510,400 USD) in unauthorized in-app purchases. The majority of these purchases, roughly 3.7 million yen (around $410,500 USD), were specifically directed towards gifting virtual items to content creators on the TikTok platform.

The child, whose identity remains confidential, reportedly utilized an iPhone belonging to older siblings to make these purchases, circumventing parental oversight. The transactions occurred between June and August of 2024 and involved the acquisition of virtual stickers and digital coins within the TikTok application.

legal Battle and Refund Demands

After discovering the extent of the spending, the parents initially sought a full refund through both the Consumer Service Center and directly from Apple. Though, they only received a partial reimbursement of 900,000 yen (approximately $78 million USD). Dissatisfied with this outcome, they filed a formal lawsuit with the Kyoto Court on July 9, 2025, seeking an additional 2.8 million yen ($243 million USD) in restitution.

The lawsuit centers on the argument that both TikTok and Apple failed to adequately verify the age of the user, permitting a minor to engage in significant financial transactions without parental consent.Legal representatives for the family claim the platforms’ age verification procedures are “inadequate” and that, even if the child misrepresented their age, the platforms maintained a duty to cancel the transactions once the underage status was confirmed.

Apple Japan has reportedly issued some refunds, while Bytedance Japan has yet to respond to the legal claims.

A Growing Trend of Uncontrolled Spending

This case is not isolated. Similar incidents involving children and unchecked in-app spending have been reported globally. In 2023, a 13-year-old girl in Henan, China reportedly depleted her family’s savings – equivalent to around $70,000 USD – on virtual game assets. reports out of England in 2021 detailed a case of an 11-year-old child making over 300 purchases in Roblox over five days, totaling approximately $35,000 USD. More recently, in March 2025, an 8-year-old in England spent $11,500 USD on Apple app Store purchases over 90 days. A recent case in Canada revealed a 12-year-old spending nearly $13,000 USD on TikTok coins.

The increasing frequency of these incidents underscores the urgent need for more robust parental control features and increased accountability from digital platforms regarding protecting vulnerable young consumers.

Location	Age of Child	Amount Spent (USD)	platform
Kyoto, Japan	10	$510,400	TikTok
Henan, China	13	$70,000	Virtual Game
England	11	$35,000	Roblox
England	8	$11,500	Apple App Store
Canada	12	$13,000	TikTok

Did You Know? According to a 2024 report by Statista, global spending on in-app purchases is projected to reach $109.7 billion USD in 2025,signifying a substantial market with inherent risks for unchecked spending.

Pro Tip: Parents should familiarize themselves with the parental control features offered by app stores and individual platforms, and regularly monitor their children’s app usage and spending habits.

The Importance of Parental Controls

The cases detailed above are not simply about financial loss; they represent a growing concern surrounding the psychological impact of unchecked digital spending on children. The gamification of in-app purchases, often designed to encourage frequent spending, can be particularly exploitative. Parents must proactively engage in conversations with their children about responsible online behavior and the value of money.

Moreover, it’s crucial for platform providers to prioritize user safety and implement more effective age verification systems.While technical solutions aren’t foolproof, they can considerably reduce the risk of unauthorized spending and protect vulnerable users.

Frequently Asked Questions about In-App Purchases and child Safety

• What are in-app purchases? In-app purchases are digital items or services that you can buy within a mobile application,such as virtual currency,extra lives,or cosmetic items.
• How can I prevent my child from making unauthorized in-app purchases? You can enable parental controls on your device and within the app stores, set spending limits, and require a password for all purchases.
• What should I do if my child has made unauthorized in-app purchases? Contact the app store or platform provider promptly to request a refund.
• Are app stores liable for unauthorized purchases made by minors? The liability of app stores varies depending on their policies and the specific circumstances, but many offer refund options for unauthorized purchases made by children.
• What is the role of TikTok in this case? TikTok is being accused of failing to adequately verify the age of the user and allowing a minor to make substantial purchases without parental consent.

What are your thoughts on the responsibility of tech companies to protect young users from in-app purchase risks? Share your opinions in the comments below!

What legal recourse might investors pursue given teh potential classification of “Project Kai” as an unregistered security offering?

The Controversy Unfolds: Kai Li and Stellar Studios

The recent announcement of Kai Li,a 19-year-old TikTok sensation,securing a staggering $400 million contract with Stellar Studios has ignited a firestorm of controversy,not amongst fans,but with a growing number of parents. The core of the issue? parents who invested in Kai Li’s early career through a now-scrutinized crowdfunding campaign are demanding refunds, alleging misleading promises and a lack of transparency regarding the campaign’s terms. This situation highlights the emerging risks within creator economy investments and the need for clearer legal frameworks surrounding social media funding.

the Crowdfunding Campaign: Promises and Perceptions

In 2022, before Kai Li’s meteoric rise to fame, a crowdfunding campaign was launched under the banner of “Project Kai,” promising supporters a share in future earnings. The campaign,hosted on a lesser-known platform,”FanVest,” attracted over 5,000 investors,primarily parents believing in Kai Li’s potential and seeking a unique investment opportunity.

Initial Promises: The campaign materials reportedly suggested investors would receive a percentage of Kai Li’s income from brand deals, merchandise, and future entertainment ventures. specific return percentages were allegedly outlined in tiered investment levels, ranging from $100 to $10,000.

Lack of Legal Clarity: crucially, the campaign lacked the robust legal documentation typically associated with conventional investment opportunities. Many investors claim they were led to believe they were purchasing a stake in Kai Li’s future earnings, rather then a limited-term agreement.

Terms & Conditions Concerns: The fine print, accessible only through a lengthy terms and conditions document, reportedly contained clauses limiting the duration of the revenue-sharing agreement to three years – a period that has now expired. This is a key point fueling the refund requests.

Stellar Studios Deal & The Refund Movement

Kai Li’s deal with Stellar Studios,encompassing a multi-picture film contract and a dedicated merchandise line,has amplified the parental outcry. Investors argue that the massive contract validates their initial belief in Kai Li’s potential and underscores the perceived unfairness of not sharing in this newfound wealth.

#RefundProjectKai: A dedicated hashtag, #RefundProjectKai, has gained traction on TikTok and X (formerly Twitter), with parents sharing their investment details and demanding accountability.

Legal Challenges: Several investors have initiated legal consultations,exploring potential avenues for recourse,including claims of misrepresentation and breach of contract. Investment fraud is being considered as a potential legal angle.

FanVest’s Response: FanVest has released a statement acknowledging the concerns and stating they are “cooperating with legal counsel” to assess the situation. However, the platform maintains it acted as a facilitator and is not responsible for the terms offered by the campaign creator.

The Legal Landscape of Creator Funding

This case highlights a significant gap in the legal framework surrounding creator funding. Traditional investment regulations frequently enough don’t apply to these types of crowdfunding campaigns,leaving investors vulnerable.

Securities Law Implications: Experts suggest that depending on how the “project Kai” campaign was structured, it coudl be considered an unregistered security offering, potentially violating securities laws.

The Rise of Revenue-Sharing Agreements: Revenue-sharing agreements with creators are becoming increasingly common, but the legal enforceability of these agreements remains largely untested.

Need for Regulation: Industry analysts are calling for clearer regulations to protect investors in the creator economy, including mandatory disclosure requirements and standardized contract terms. Digital asset investment regulations may offer a potential framework.

Protecting Yourself: Tips for Investing in Creators

Before investing in a creator’s project, consider these crucial steps:

1. Due Diligence: Thoroughly research the creator and the platform hosting the campaign.
2. Legal Review: Have a legal professional review the terms and conditions before* investing. Pay close attention to the duration of any revenue-sharing agreement.

3.