Chinese-owned short video-sharing app TikTok has agreed to update the rights of European Union users', EU regulators have mentioned on Tuesday, averting possible sanctions in a case was sparked by multiple complaints from different consumer groups in the bloc.

The European Consumer Organisation (BEUC) in its 2021 complaint said that TikTok has encountered rapid growth all over the world, especially among teenagers. But this app has failed to protect children from hidden advertising and inappropriate content, which is an important part that needs to be looked upon.

The company later was a part of the discussions which was held subsequently with the European Commission and then the national network of consumer protection authorities. The discussion was held in an attempt to get the current concerns resolved as soon as possible. Along with the discussion to solve the problems, the EU has agreed to several changes, as per the EU executive.

Well, it includes the introduction of an extra option that would allow its users to easily report those ads that could potentially encourage children to buy certain goods or services or persuade their parents or others to buy those things for them.

According to the EU, the branded content should avoid promoting inappropriate products and services which could lead to any kind of dispute or behavioral change among children or anyone. Among other commitments, the company could clarify the ways they could get the rewards from its platform, and paid advertisements in videos need to be clear when it is labeled.

'All social media platforms are required to play by the rules and regulations and make sure that consumers can easily identify commercial content, including when promoted by influencers,' commission justice chief Didier Reynders said in a statement.

TikTok said it would continue to improve its features to maintain its followers even after following the new rules by the EU.

BEUC, however, said TikTok's offer fell short in some areas.

According to BEUC Deputy Director-General Ursula Pachl in a statement, 'The impact of such commitments on consumers remains highly uncertain. Despite over a year of dialogue with TikTok, the investigation is closed now, leaving significant concerns that we raised unaddressed.'