TikTok updated branded policy is banning influencers to promote financial services companies which include, investments, share trading, and buy now pay later companies like cryptocurrency and klarna. The crackdown is on influencers so advertisement will be allowed.
Some of the cryptocurrencies like doge have gained a lot of popularity through social media platforms and TikTok is one of these platforms. Nowadays the marketing plan of each company includes the promotion of its product through social media platforms. TikTok updated branded policy bans promotions through social media influencers.
Since covid has come to the scene the number of scams on these platforms has increased by a significant number. TikTok is a Chinese application and it can be part of china’s crackdown on cryptocurrency. To cater to these types of issues TikTok has prohibited its influencers to promote, loans and credit cards, get rich quick schemes, cryptocurrencies, buy now & pay later, trading platforms, and investment schemes.
Influencers get a commission for collaborations to endorse the product or scheme of any company. Lack of investing skills can mislead the young generation to lose their money. The Financial conduct authority has also shared its opinion that social media is partly responsible for young investors taking too many risks. TikTok updated branded policy makes sure to save its users from such scams.
The chief executive and founder of “boring money” Holly Mackay shared that:
The sole incentive for unqualified influencers to talk about financial products has been making money. With that removed, it still leaves the road open for those who want to help and inform, but are agnostic about which products people end up choosing.
In practice, most of the big brands are still struggling to get their heads around Twitter, let alone work out TikTok, so this should just clean up those who were spouting dangerous rubbish for commercial gain.
Uk authorities are also after social media platforms to discourage scammers and review promotions before advertising. TikTok updated branded poicy has taken an initiative.