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Posted: Wed 20 January 2021 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
Category: Business 101


At the end of 2020, TikTok released an updated version of their community guidelines. In the new guidelines the prime focus was on the trust and security of its users. As the platform became increasingly popular, it became the ideal playground for fraudulent activities which caused financial losses to the users. To safeguard the users from falling prey into such illegal money-making schemes TikTok banned the upload of content that promotes Ponzi schemes, pyramid schemes, and multilevel marketing. While this may hamper the fraudulent activities of tricksters, it will help in the general cleansing of the MLM industry to a certain extent.

This move by TikTok helps to restrict the spread of illegal pyramid schemes and ponzi schemes which pose as legit MLM. The MLM industry, despite being a genuine business model, is facing a great threat caused by these false claims that lure vulnerable people into it. Misleading information and false claims were always a threat to the MLM industry. How influencers market their products sometimes draws criticism. This will not always be intentional, however, the consequences it makes greatly impact the whole MLM industry. TikTok was one among many platforms where influencers market their products without any transparency. With this ban flow of misleading information and false claims can be prevented, which in turn only helps legit MLM companies who sell their products and services lawfully. 

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