TikTok has added financial services and products to its “Globally Prohibited Industries” list on its Branded Content Policy page. Photo: Reuters
TikTok has added financial services and products such as cryptocurrencies and pyramid schemes to the list of prohibited advertising content on its platform.
A Financial Times report said the move came after users were warned not to take financial advice from TikTok videos amid concerns that it could be misleading, especially for younger savers.
TikTok has added financial services and products to its “Globally Prohibited Industries” list on its Branded Content Policy page.
The section includes financial asset lending and management, loans and credit cards, Buy Now Pay Later services, trading platforms, cryptocurrency, forex, debit and prepayment cards, forex trading, and pyramid schemes.
But “the real evidence of TikTok’s commitment to cleaning up its actions will be in how it enforces policies to ensure that prohibited content is quickly identified and removed,” said Anthony Morrow, co-founder of financial advisory service OpenMoney.
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“We know that social media influencers are driving demand for day trading and unregulated investments like cryptocurrencies by addressing the potential returns without explaining the enormous risks involved.”
Morrow said TikTok posts, including #Bitcoin, received 4.4 billion views, while # cryptocurrency received 1.5 billion views, #investment 790 million, and #Stocktobuy 447 million.
He stressed the importance of getting advice from someone “who is properly qualified to speak about the options” and making sure you understand and are comfortable with the level of risk. “
Last month, TikTok partnered with UK Citizens Advice to create videos that show how to make informed financial decisions and understand financial terminology.
Earlier this year, the UK’s Financial Conduct Authority (FCA) said young people are getting involved in riskier investments, which may be triggered by the availability of new investment apps.
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She warned that “there is evidence that these higher risk products may not always meet the needs of these consumers, as nearly two-thirds (59%) claim that significant investment loss will have a profound impact on their current or future lifestyle.” would have.”
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