In a groundbreaking decision, TikTok has become the first major social media platform to officially prohibit multilevel marketing (MLM) schemes, categorizing them under ‘Frauds and Scams.’ The platform recently updated its community guidelines, making it clear that any content related to MLMs, Ponzi schemes, or other “get rich quick” tactics will be swiftly removed.
This new policy states that any posts promoting Ponzi schemes, multi-level marketing, or investment schemes that promise unrealistic returns will be banned. TikTok’s initiative marks a significant step in combating the often misleading nature of MLMs, which have evolved from traditional gatherings like Tupperware parties into online networks where individuals are encouraged to recruit new members, often at the expense of genuine product sales.
If you’ve managed to avoid the barrage of invitations to join an MLM from acquaintances, consider yourself fortunate. These programs frequently rely on existing distributors to recruit new ones, creating a cycle that can resemble a pyramid scheme. Many people find themselves misled about potential earnings, leading to considerable financial losses.
On TikTok, users often showcase their MLM achievements, flaunting rewards such as new cars, product boxes, or bonuses for signing up new affiliates. This visibility allows them to direct potential recruits to their other social media accounts, further perpetuating the cycle.
TikTok is taking a proactive approach to combat this issue, promising to eliminate content flagged either by users, moderators, or automated systems. “We remove content and accounts that violate these guidelines, which we identify through a combination of technology that automatically flags content to our moderation team for review, proactive investigation, and reports we receive from our community,” stated a TikTok representative.
In a time when people are spending more hours online, this move is crucial in safeguarding individuals from scams that could drain their resources.
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In summary, TikTok’s decisive action against MLMs signifies a pivotal shift in the social media landscape, aiming to protect users from deceptive marketing practices and financial scams.
