Giant social media platform TikTok has recently acted on managing advertisements by banning various promotions of financial services like cryptocurrency. Several cases show that users tried investing in cryptocurrencies influenced by influencers. Major incident that caught everyone’s concern was taking financial information from young users.
According to TikTok’s branded content policy, it prohibited promotion of all financial services and products globally. It includes, lending and management of money assets, cryptocurrency, foreign exchange, pyramid schemes, investment services and get rich quick schemes.
Martin Bamford (head of client education at Informed Choice) stated that “My interpretation on TikTok is clamping down on directly or indirectly sponsored content, which is leading to an affiliate link, like signing up in a trading platform and getting free stocks”. He also added that poorly informed presenters give various misleading information. They lure the innocent followers with promises of becoming rich. But, in point of fact they just make their own money by getting signed from affiliated links.
TikTok have also recently partnered with Citizens Advice in June 2021. It will educate users by putting up financial literacy videos on the platform who seek advice for financial services. They have reconfirmed the users in creating a safe space to use in teaching the community about maintaining safety online.