Stubbs Alderton & Markiles Senior Counsel Neil Elan was recently quoted in PRNEWS regarding the potential TikTok ban and its implications for businesses. In the article, Elan advised that companies using TikTok for business should prepare for possible disruption, noting the importance of reviewing existing contracts.
"Advertisers and agencies should review their contracts to see how a ruling would affect their ability to comply with their obligations with counterparties," Elan explained. He highlighted that a TikTok ban could potentially trigger force majeure clauses in contracts, which could affect agency and brand partnerships, particularly regarding payment, budgets, and deliverables.
The social media platform currently faces a January 19, 2025 deadline to be sold by its Chinese parent company ByteDance or face a shutdown in the United States.
Read the full article on the PRNEWS website.
