Kid Spends $400.000 on TikTok Gifts: Parents Demand Refund – What We Can Learn

Kid Spends $400.000 on TikTok Gifts – A shocking case from Japan has been making headlines: a 10-year-old boy spent the equivalent of $400.000 (around ¥46 million) on TikTok and in-app purchases, most of it on virtual gifts for streamers. According to reports, about ¥37 million ($320,000) went directly into TikTok’s live gifting feature. https://dontkilladream.com

The child’s parents, understandably furious, have now filed a lawsuit against both ByteDance Japan (operator of TikTok) and Apple Japan. The case was officially submitted to the Kyoto District Court on July 9, 2025.

While this story has gone viral for its outrageous number, beneath the surface lies a valuable lesson for parents, educators, and anyone concerned about digital literacy and child safety online. Let’s break it down.

Kid Spends $400.000 on TikTok Gifts :

How Did a Child End Up Spending $400.000?

The first question everyone asks is: how on earth could a 10-year-old rack up this kind of bill?

It turns out the boy was using his older sibling’s iPhone, which had full access to the App Store and payment methods. With just a few taps, he purchased TikTok coins, converted them into virtual gifts, and sent them to his favorite streamers during live broadcasts.

Here’s how TikTok’s gifting system works:

1. Users buy coins with real money.
   
2. Those coins are exchanged for virtual gifts (like roses, teddy bears, or animated items).
   
3. Creators receive the gifts and can cash them out as real money.
   

While TikTok’s policy requires users to be 18+ to purchase coins, verification isn’t airtight. If a child has access to a device with payment information already saved, they can bypass safeguards with ease.

What Does Japanese Law Say?

The parents’ claim is well supported by the law. Under Japan’s Civil Code (Article 5), contracts made by minors can be voided by their legal guardians.

But there are a few key caveats:

• Children are only required to return “existing benefits.” In other words, if unused coins remain, those can be refunded. But coins already spent on gifts may be unrecoverable.
  
• TikTok offers a 7-day refund window—but only if the coins remain unused. In this case, most of the balance had already been spent.
  
• Apple also provides a refund system through its App Store, but each request is reviewed individually and not all transactions qualify.
  

That’s why the parents chose to escalate this to court: to test whether TikTok and Apple can be held fully accountable for such a massive loss, and whether consumer protection laws for minors apply in the digital space.

Why Parents Should See This as a Wake-Up Call

This isn’t the first time a child has spent big on digital purchases—but the scale here is jaw-dropping.

Cases of kids accidentally (or deliberately) spending thousands of dollars on games, skins, or streaming platforms are reported worldwide. But this case stands out because of:

• The extreme amount ($400.000).
  
• The participation of significant IT companies (Apple and TikTok).
  
• The legal precedent it could set regarding minors and digital contracts.
  

For parents, it’s a stark reminder: children today can access massive financial tools through everyday devices. Without strict controls, the line between play and real money spending can disappear in seconds.

5 Practical Tips to Prevent Kids from Overspending Online

So, what can families do to avoid becoming the next headline? Here are five easy steps:

1. Enable Parental Controls
   
   • Both iOS and Android allow you to limit in-app purchases or set spending restrictions.
     
2. Require Password or Face ID for Every Transaction
   
   • Don’t leave payment methods stored with auto-confirmation.
     
3. Create Separate Accounts for Children
   
   • Use Apple’s Family Sharing or Google Family Link to set age-appropriate permissions.
     
4. Teach Kids About Digital Money
   
   • Explain that virtual coins and gifts equal real money, just in another form.
     
5. Monitor Purchases Regularly
   
   • Check notifications, purchase history, and linked payment methods to spot unusual activity early.
     

The Bigger Picture: Where Do Platforms and Regulators Fit In?

This lawsuit doesn’t just affect one family. It sparks bigger questions:

• Should TikTok and other platforms enforce more stringent age verification for financial transactions?
  
• Should app stores like Apple and Google automatically require parental approval for all underage purchases?
  
• How should consumer protection laws evolve as kids spend more time in digital ecosystems?
  

In countries like Japan—and even in Indonesia or the U.S.—these issues are becoming increasingly relevant. Regulators may soon be forced to tighten rules around in-app purchases and live streaming gifts.

Final Thoughts

The story of a 10-year-old boy spending $400.000 on TikTok gifts is more than a viral headline. It’s a cautionary tale about:

• The role of parents in monitoring digital access,
  
• The responsibility of platforms to safeguard minors,
  
• The legal gray areas of child contracts in the online economy.
  

For parents, the lesson is clear: never underestimate how quickly a child can turn a smartphone into a financial disaster. With the right safeguards, education, and vigilance, we can protect kids from making mistakes that carry life-changing price tags.