Why do MLM companies still appear on TikTok after being banned? – Daily Movie
MLM companies have been the bane of many people’s existence long before TikTok was a thing. After you hit a certain age, half of the people you attended high school with try to sell you LuLaRoe or Amway products. Worse yet, they may try to get you to come to a seminar so that you can sell MLM products and invest your hard earned money in a “business”.
However, while other social media companies seem to be looking at your friends shilling for MLM businesses and saying “that’s why we invented the block button,” TikTok apparently took it a step further and decided to ban MLM companies – and their shills – from their video-sharing app altogether.
But if they have banned them, why is Becky with the leggings still selling MLM products and trying to get people to sign up? Hey TikTok, you missed Tom with the protein powder! Before you move into the middle of nowhere to get away from these clowns, let’s take a look at why MLM companies haven’t completely disappeared from TikTok despite the ban.
#MLM – Multilevel marketing companies rely on #social media for recruitment. #TIC Tac just became the first big #Platform to ban it. @Reddit, anti-MLMs celebrated the update and praised TikTok for “fighting the good fight”. @kait_tiffany vhttps://t.co/D63idhKkiI pic.twitter.com/TTGENhj2eV
– sarmistha tarafder (@sarmisthataraf) December 18, 2020
The importance of the media to America
TikTok announced its ban on MLM companies in December, so Media Matters for America, a nonprofit that researches disinformation, decided to see if TikTok was keeping its word on the MLM ban.
In their article on the declared ban on TikTok, the MMFA defined MLM companies as: “The companies that recruit salespeople to buy their products and sell them directly to others, and these individual ‘distributors’ earn money. money through commissions or by recruiting new distributors to resell their products. ”.
They further described MLM companies as “predatory,” arguing that they target women, people between the ages of eighteen and twenty-five (demographics of TikTok) and low-income people saying they can earn. extra money. However, they explained, “Studies estimate that almost half to almost all participants lose money, leading reviewers to frequently compare MLMs to fraudulent pyramid schemes.
Breaking it down further, the MMFA cited two studies – one by the AARP (American Association of Retired Persons) and the other by the FTC (Federal Trade Commission) – which found that between 75% and 99 % of participants in MLM companies actually lose money.
TikTok this week announced updates to its community guidelines, which include a new policy against content related to multilevel marketing, Ponzi, and other “get-rich-quick” programs. pic.twitter.com/hBb3Ne7TmK
– Mantas J ⚠️ (@peakminute) December 17, 2020
Frauds and scams
Last December, TikTok updated its community guidelines to include MLM companies in its frauds and scams section. “We do not allow anyone to operate our platform to gain user trust and cause financial or personal harm,” TikTok explained in this section. They further banned outright “content that represents or promotes Ponzi, multilevel marketing or pyramid schemes.”
While a TikTok spokesperson sent an email Business intern and assured them that they have “several steps” to remove the MLM companies’ platform and kick them off their site for good, the MMFA calls BS. Additionally, the MMFA accused TikTok of allowing MLM businesses to thrive despite the ban.
The MMFA reported five verified Avon accounts on TikTok, an MLM company that has been around forever. They also provided examples of companies like Shakee & Herbalife still active on the site.
“Let’s reset and choose SAIN in 2021 with @shakleehq # 2021reset #MakeHealthyHappen,” posted an influencer selling Shakelee in January, after the ban on MLM companies was supposed to go into effect. The MMFA said that at the time of publication of its article, the video had been viewed close to $ 5 million.
Are MLM Businesses Bad For Your Health?
In June 2020, the FDA sent a letter to sixteen MLM companies for fraudulently claiming that their products could help save you from COVID-19. These companies included “Isagenix, Melaleuca, Plexus, The Juice Plus + Company, Vivri USA and Youngevity” according to Forbes. Plexus is a company that the MMFA cited as still active on TikTok despite the ban.
While MLM companies like Plexus have reportedly claimed their products can treat – or even cure – baseless COVID-19, other companies have already received warning letters about exaggerated claims about earnings potential.
An anonymous distributor from Melaleuca, an online nutrition and wellness MLM, wrote: “Please consider EVERY DIRECTOR of Melaleuca to have received a paycheck during this entire pandemic / crisis!… If everyone spends $ 100 / month… @ 20% = $ 20 / client x 20 clients = $ 400 / month of income – FOREVER. ”
Do you think social media companies should crack down on MLM companies on their platforms, or do you think that’s why God invented the “block” button? Let us know in the comments!