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TikTok Is Banning MLMs And Other "Content That Aims To Deceive People For Financial Gain"

The company hopes to protect users who are vulnerable to financial abuse.

Posted on December 16, 2020, at 1:19 p.m. ET

Two hands hold a phone that is displaying the TikTok app
Xinhua News Agency / Getty Images

TikTok announced updates to its community guidelines this week, which include a new policy against content related to multilevel marketing, Ponzi, and other "get rich quick" schemes.

In a statement to BuzzFeed News, a spokesperson for the company said it has "multiple measures in place to reduce the spread of misleading content, including content that aims to deceive people for financial gain."

On Tuesday, TikTok added to its "frauds and scams" guidelines a ban on "content that depicts or promotes phishing," "content that depicts or promotes Ponzi, multi-level marketing, or pyramid schemes," and "content that depicts or promotes investment schemes with promise of high returns, fixed betting, or any other types of scams."

The company hopes to protect users who are vulnerable to financial abuse.

@itscourtneymichelle

It’s the lack of transparency for me #pyramidscheme #mlm #alanismorssette

♬ original sound - Courtney Michelle

To help contain the spread of multilevel marketing schemes, which have become prevalent across many social media platforms, TikTok says it will remove any content flagged by users, moderators, or its automated technology.

"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," the spokesperson said.

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