TikTok has outlawed multi-level marketing promotions across its video-sharing platform, classifying such schemes under "frauds and scams" alongside Ponzi and pyramid operations. This policy change, announced through updates to the app's community guidelines, aims to shield users from deceptive practices that could lead to financial or personal detriment.
The updated guidelines explicitly prohibit content that exploits user trust for unlawful financial or personal gain. This includes material depicting or promoting phishing, Ponzi schemes, multi-level marketing, and investment schemes promising unrealistic returns. The platform stated it will remove content designed to defraud individuals or steal assets.
However, a subsequent report from Media Matters in late May 2021 alleged that TikTok was not enforcing this ban. The report claimed that MLMs continued to thrive on the platform, with TikTok seemingly facilitating their presence. In one instance, the platform verified at least five Avon accounts, despite Avon's status as a major multi-level marketing company.
Evidence suggested Avon was also sponsoring influencers for product promotions on TikTok through coordinated advertising campaigns. Beyond Avon, other MLMs frequently observed promoting weight loss products and supplements on the platform included Shaklee, Plexus, It Works!, and Herbalife. This indicated a potential disconnect between stated policy and actual enforcement.