After TikTok was restored following a half-day outage, companies face legal uncertainties regarding whether U.S.-based entities can manage international brand accounts. Concerns have intensified due to Supreme Court legislation, leading agencies like Pereira O'Dell to carefully reassess their posting strategies. Legal exposure remains unclear, even as past executive orders offer minimal protection. With potential fines reaching $850 billion for law violations, brands are treating the situation with caution as they navigate this complex legal landscape.
"There's a big investigation [underway] for our legal team to figure this out," she added.
"In 75 days or less, if TikTok goes down, is a U.S. entity legally permitted to operate a TikTok account for a global brand?" Riley said.
Legal experts warn that Trump's directive offers little real protection.
Companies that violate the law could face fines of up to $5,000 per user... which could amount to a staggering $850 billion in penalties.
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