No more sales pitches? TikTok to ban MLMs

Tired of getting hounded to buy leggings, bags and cookware all over your social media sites or being asked to join the selling team?

The social media platform TikTok is looking to put a stop to it.

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TikTok is taking steps to limit any content that is part of a multilevel marketing company, Ponzi schemes and other “get rich quick” scenarios, BuzzFeed News reported.

A company spokesperson told BuzzFeed News it has “multiple measures in place to reduce the spread of misleading content, including content that aims to deceive people for financial gain.”

Content that goes against the community standards can be flagged by moderators or reported by users, Unilad reported.

There is also an automated system that monitors posts.

Click here for the guidelines from TikTok.

What is an MLM?

According to the Federal Trade Commission, MLM “sell their products or services through person-to-person sales.” Sellers either have parties in their homes or a customer’s home, but they can also be done virtually.

The seller is considered an independent “distributor,” “participant” or “contractor” who makes money by selling to customers or by recruiting more sellers and getting a commission on their sales.

It is not considered a pyramid scheme since sellers can make money by making sales and not necessarily recruiting more team members.

What is a pyramid scheme?

A pyramid scheme is a scam. They look like an MLM in some cases but will cost the seller money. You may have to buy products before you are even able to get paid or attain bonuses. You also have to buy a certain amount of product. Even if you don’t need it. Your income also depends on recruiting, according to the FTC.

Those who sign up to sell may never sell enough inventory to make any money. They also can fall behind on fees, FTC said.

For more on the difference between MLMs and pyramid schemes, click here.

Cox Media Group