TIKTOK BANS ON MLM SCHEMES AND PRODUCTS
Tiktok bans Multi-Level Marketing Schemes and Products sales through their platform because of people promoting scam products, fraud services through MLM Business. TikTok has much assessment to be cautious of MLM, which explains why it’s the only social media platform to choose such a clear stand on them. One of the reasons is that commonly teenage users could be sensitive to illegal Multi-Level Marketing’s policies. Under the platform’s updated “Frauds and Scams” guidelines, the app initiated bans to users who are posting, uploading, or sharing content that depicts scams, phishing, and pyramid schemes based on contents will be highly treated as fraudulent plans.
The popular video-content app ‘TikTok’ updated their community guidelines to ban making videos that promote illegal MLM policies to protect their users from financial scams. Multi-Level Marketing depends on a non-salary-based working method by selling a company’s products to make earnings. The members make their own money mostly from hiring what is referred to as “down lines,” or other people they persuade to join the company on their recommendation.
WHAT IS TIKTOK?
TikTok is the leading objective for short-form mobile reels. Its mission is to inspire creativity and produce joy. TikTok was launched in 2017 for iOS and Android in most markets outside of the People’s Republic of China. The TikTok platform is employed to form a range of short-form videos, from genres like dance, comedy, and more that have a duration from 15 seconds to 1 minute.
WHAT IS MULTI-LEVEL MARKETING?
Multi-Level Marketing (MLM) is a strategy that some direct sales companies use to encourage existing distributors to recruit new distributors. There can be hundreds or thousands of members worldwide in MLM schemes, but relatively few earn meaningful incomes from their efforts, indicating a possible pyramid scheme.
WHAT ARE MLM PRODUCTS?
Multi-Level Marketing (MLM) is a marketing method for selling products or services. There are many MLM companies in this world in which each company sells a wide variety of specialized products of their own. The products sold by MLM companies are mainly personal care, nutritional supplements, cosmetics, jewellery, household products, and technology.
HOW TO USE TIKTOK AS A DIGITAL MARKETING CHANNEL?
TikTok represents a beautiful marketing platform with the potential to usher in serious revenue. That being said, we have seen lots of trends in TikTok over the past few years. TikTok provides marketers with A level playing field when it involves reaching and engagement.
Social media platforms like Instagram, YouTube and TikTok, these platforms can have billions of monthly users. With such a great user database, These users can easily influence other social media users also, so even TikToK users with zero followers can get millions of views and influencers on a single video because of the viral nature of the TikTok application.
- Understand how TikTok works for you to page your channel.
- Use paid advertisements on TikTok for marketing purposes.
- In reels of content, mention names about what you would like to market like Top View, Brand Takeovers, Hash tags, Branded Effects, and so on.
- By promoting user communications and connections.
- Make fun, unique, and creative TikTok content for your brand can help with boosting popularity.
- Use Hashtag Challenges to influence people and marketers.
WHY TIKTOK BANS MLM?
MLM companies are legal as long because the primary source
of income comes from product sales, not through recruiting others. Multi-Level Marketing members sell products to earn commissions and to attract more members to buy and sell products as per the Federal Trade Commission (FTC).
A TikTok spokesperson said that If the corporate has exploiting behaviour, then reduce the spread of content to deceive users for gain, which is against the law. TikTok has no intention to support that. These days, MLMs survive through online social media. You know, the fraud invitations you get from people you’ve never met that show up as a page to “LIKE” or a Direct Message (DM) from a friend of a friend who thought you’d be perfect for selling any of their product.
Eventually, they choose to ban illegal content that promotes MLM sales through TikTok because of the reports and complaints from the users. The supporters also lose a lot of money through scammed content before their community guidelines were updated.
UPDATED COMMUNITY GUIDELINES ON TIKTOK
Ban all videos that promote Multi-Level Marketing fraud schemes.
- Ban any content that depicts self-harm or body shaming will now be removed regardless of the user’s intention of posting it.
- Ban content that promotes illegal Pyramid schemes and Multi-Level Marketing schemes.
- Ban MLM content that earns the primary source of income not through product sales but through recruiting others.
- TikTok bans any content that doesn’t follow recently updated community guidelines.
” We want our community to feel comfortable and confident expressing themselves exactly as they are.”
– A TikToker told the media.
“We do not allow anyone to use this platform to exploit our users and bring financial fraud or personal injury,”
– Reported on TikTok website.
HOW TIKTOK SECURED THIER USERS FROM ILLEGAL MLM SCAMS?
TikTok renewed its user guidelines to ban anyone from using their platform to exploit the trust and cause financial or personal harm to their users. Also stated, they are going to take severe action on users who don’t follow their New Community Guidelines.
“Users should not post or share content that reflects or promotes Multi-Level Marketing, or Pyramid schemes.”
According to the Federal Trade Commission (FTC), MLM companies hire people to sell products for the commission and encourage members to engage more stakeholders to buy and sell products.
IMPACT OF TIKTOK BAN ON MLM BUSINESS
The app made waves in social media platforms when it announced a policy banning content representing or favouring illegal Multi-Level Marketing or Pyramid schemes MLM by taking advantage of their platform and users.
MLMs are popular these days because they offer the chance to work from home safe with your family and make money while setting your working hours and goals. It’s an attractive opportunity, particularly as unemployment rises during the pandemic. While the rules seem strict, some users criticized TikTok’s choice to generalize Network Marketing or Multi-Level Marketing companies with other scams and fraud schemes.
FUTURE OF THE TIKTOK MLM BAN.
It’s not just the loss that causes such a lot damage when people join an MLM. The emotional price they pay will be devastating. Like other scammers and frauds do, MLM schemes cheat you in with false promises.
However, if you question me about the longer term of the TikTok MLM Ban, it is a piece of good news. Because indeed, the illegal MLM industry is in decline. So not only for all the brave hard-working people within the industry, even for the consumer, unemployed people, potential women can market in TikTok again.
TikTok’s new regulation means that MLM companies will not recruit users and trade their products on their platforms. Authorities predict that MLM associates will still try to take out this ban, but it’s still the best move on the right path. Popular social media platforms around the world like Facebook, YouTube, Instagram have come to know about this and announced a similar ban as a success over what they consider as a “Greedy Marketing System.” YouTubers with large followers had started encouraging MLM traders to use TikTok to promote their brand.