Category: Business

Tags: MLM, tiktokbanmlm, falseclaims, legitmlm, scam, pyramidschemes, ponzischemes

Over the past decade, cyberspace has witnessed the evolution of social media platforms and the increasing behavioral dependency on it by quite a great deal of people. TikTok is one such social media giant that has caused enormous impact in the virtual world ( https://www.bbc.com/culture/article/20201216-how-tiktok-changed-the-world-in-2020 ). As of late 2020, the user base of TikTok has reached 800 Million which suggests that it’s influence has branched out into different age groups and regional demographics. The app recently updated their community guidelines regulating the upload of contents that promotes Ponzi schemes, pyramid schemes ( https://en.wikipedia.org/wiki/Pyramid_scheme )and multi-level marketing ( https://www.tiktok.com/community-guidelines ). The updated guidelines mentions that any activity that could cause “financial or personal harm” to users will not be tolerated in the app and the “content that deceives people in order to gain an unlawful financial or personal advantage” will be removed. This initiative of TikTok ensures the trust and security of its users and prevents fraudsters from targeting gullible users who are unaware of MLM and related concepts . This can be seen as an appreciable attempt to help genuine MLM companies make themselves available with quality products and services. Read the blog https://www.epixelmlmsoftware.com/industry-news/tiktok-bans-pyramid-ponzi-mlm-schemes to know more about how MLM companies can benefit by this regulation. Care must be given to prevent legit companies getting affected by this regulation. Educating the community through webinars, handouts, and business opportunity reference manuals would help people to be vigilant of the fraudulent businesses and to understand the legal measures associated with them.