UPDATE: On December 18, the U.S. Supreme Court announced that it will review TikTok’s First Amendment challenge to a federal law requiring the company to divest from its foreign owners or face a national ban.

A federal appeals court has maintained the initial ruling that the social media app TikTok will be banned in the United States if it’s not sold by its Chinese parent company by January 19 or if a sale isn’t in progress.

The initial law, signed by President Biden in April, cites national security concerns over the Chinese government’s potential to spy on and hoard data from American users. The law also suggests 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.
  • Included in that number are many small business owners, such as promotional products professionals, who 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

In his opinion, one of the three ruling judges, Douglas Ginsburg, wrote that the court acknowledged the importance of the First Amendment’s protection of free speech but countered that argument by claiming that the ruling was meant to protect that freedom from foreign threats.

“Consequently, TikTok’s millions of users will need to find alternative media of communication,” Ginsburg wrote.

  • Attorney General Merrick Garland called the decision an “important step in blocking the Chinese government from weaponizing TikTok to collect sensitive information about millions of Americans, to covertly manipulate the content delivered to American audiences and to undermine our national security.”


Now, TikTok will seek to put a pause on the sale-or-ban law in order for an appeal to the U.S. Supreme Court. The company filed an emergency motion on Monday to the D.C. circuit, urging it to temporarily enjoin the law, according to reporting from Allison Grande of Law360.

“Before that [shutdown] happens, the Supreme Court should have an opportunity, as the only court with appellate jurisdiction over this action, to decide whether to review this exceptionally important case,” TikTok told the D.C. Circuit. “And an injunction is especially appropriate because it will give the incoming administration time to determine its position — which could moot both the impending harms and the need for Supreme Court review.”

  • President-elect Donald Trump initially attempted to ban TikTok during his first term. During his campaign, he took the exact opposite stance, claiming he will “save” TikTok.


Promo Reaction

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. His instant reaction to the ruling is 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.