The Supreme Court has reached a verdict on the much-anticipated final decision regarding a U.S. ban of the social media video app TikTok.

In a unanimous ruling, the nation’s highest court has declared that TikTok’s China-based parent company ByteDance must sell the social media app by Sunday, or it will be banned in the U.S.

“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 ruling states. “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.”

RELATED: TikTok Scrambles To Avoid ‘Sale-Or-Ban’ Ruling, Promo Reacts

Preparing for the SCOTUS ruling, TikTok had already planned to shut down U.S. operations on Sunday, Reuters reported. However, the Biden administration doesn’t plan to take action that forces TikTok to immediately go dark for U.S. users on Sunday, ABC News reported.

  • The law doesn’t force TikTok to shut down. Instead, it forces app stores and internet hosting services to drop the app or face fines of up to $5,000 per user.


The initial law, signed by President Biden in April, cited national security concerns over the Chinese government’s potential to spy on and hoard data from American users. The law also suggested that the video app could slowly influence the American public through the content that it either suppresses or pushes to users.

  • Approximately 170 million individuals in the U.S. are on TikTok.


TikTok’s Impact On Promo

Many small business owners, such as promotional products professionals, use the app to promote their offerings and reach new clients and partners.

“TikTok has become an essential tool for engaging audiences, particularly Gen Z and Millennials,” says Meg Erber, director of sales at Proforma – PPAI 100’s No. 3 distributor – and a member of PPAI’s 2024 #Online18. “Even Gen Xers are approximately 20% of TikTok’s users globally. This generation wields significant economic influence, spending over $2.4 trillion annually.”

TikTok has become an essential tool for engaging audiences, particularly Gen Z and Millennials. This generation wields significant economic influence.”

Meg Erber

Director of Sales, Proforma

  • Reporting from Law360’s Jade Martinez-Pogue revealed that Project Liberty, led by Kirland & Ellis, made an offer earlier this month to acquire TikTok, which would allow the app to continue to operate in the United States.
  • Project Liberty said that it would preserve TikTok’s community while protecting the users’ data from foreign threats.

Javier Melendez, national account executive at PPAI 100’s No. 91 distributor Walker-Clay, has leveraged TikTok to create his own brand, drumming up business and generally keeping his name top of mind with clients. In December, he predicted that there is simply too much money on the line for TikTok to resist a sale if it comes to that.


“TikTok is too big a platform to not abide by the conditions the government is now stipulating, so someone will most likely come riding in,” says Melendez. “I would be surprised if they didn’t already have contingency plans in place for this possibility.”

Nick Lateur, vice president of revenue at business service provider Merch.ai, was named the best social media user in promo in the 2024 PPAI #Online18. He says that loss of audience and revenue will hit some promo companies, but it will also have a ripple effect on the speed at which promo trends spread and the communities formed through promo professionals who might otherwise never connect.

“Some promo companies are able to utilize TikTok to shed a unique light on their services and humanize their teams,” Lateur says. “The ban could weaken brand communities and limit real-time trend discovery, making it harder to stay unique and competitive.”

The ban could weaken brand communities and limit real-time trend discovery, making it harder to stay unique and competitive.”

Nick Lateur

VP of Revenue, Merch.ai

Connections, communities and amplifying brand awareness have all been ingredients in TikTok’s promo algorithm, according to Erber. At the moment, she says, no platform is matching that impact, and there will be ramifications if it goes away.

“For small businesses, the impact could be even more devastating,” Erber says. “Many have relied on TikTok’s organic reach as an affordable way to gain visibility and drive sales. While I recognize the security concerns behind the ruling, we can’t ignore the economic consequences for the thousands of businesses and entrepreneurs who depend on TikTok as a primary marketing tool.”

Jade Crider, social media coordinator at Ohio-based distributor Hasseman Marketing, will be participating in a panel called “Gen Z Speaks: Bridging The Gap For Authentic Connections.” She says that she’s seen firsthand the ways TikTok has fostered community and uplifted small businesses, also confirming that it is an excellent platform to influence the younger generations.

She does, however, suggest that those same younger generations are nimble with their social media preferences.

“If TikTok were to cease operations, users would adapt and migrate to a new platform, and I would shift my attention to whichever platform I believe would have the greatest impact,” Crider says.

If TikTok were to cease operations, users would adapt and migrate to a new platform, and I would shift my attention to whichever platform I believe would have the greatest impact.”

Jade Crider

Social Media Coordinator, Hasseman Marketing

That’s a sentiment shared by Melendez, who reminds the promo community that success with any social platform does not render tried-and-true methods obsolete.

“TikTok’s not the only game in town,” Melendez says. “I am a big proponent of using personalized video in ways beyond just posting every day on TikTok. However, it could also be a voice note, or a handwritten card.”

TikTok’s not the only game in town.”

Javier Melendez

National Account Executive, Walker-Clay

Looking for a silver lining in a potential ban, Lateur also suggests that there’s a temptation for every business to gravitate to the latest social media trend, even if it doesn’t make as much sense for their product, brand or goals.

“Some businesses don’t belong on TikTok, anyway, so the ban may push businesses to re-focus on their strengths, giving them more time to improve existing marketing channels such as websites, email lists or LinkedIn,” Lateur says.

  • Lateur also points out that data security concerns are not unique to the U.S. government. Clients and partners may fear these threats as well. Reinforcing trust in cybersecurity is something any business should consider.