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TikTok is pocketing up to 70% of donations from charitable live streams, the BBC found

Snacks / Thursday, October 13, 2022
ByteDance’s TikTok faces scrutiny… again (Yan Guolin/Getty Images)
ByteDance’s TikTok faces scrutiny… again (Yan Guolin/Getty Images)

Shocking… A BBC investigation found that ByteDance-owned TikTok is profiting from donations on charitable live streams, which have gained popularity. The BBC went on the ground in war-torn Syria, where displaced families living in camps are begging for donations to cover everything from food to medical care — all through TikTok live streams. What the BBC reported:

  • TikTok is said to pocket up to 70% of donations collected via live streams. For five months the BBC scraped info from 30 accounts broadcasting live from Syrian camps. Some streams earned up to $1K/hour, but families said they received a tiny fraction of that.
  • TikTok’s response: Gen Z’s favorite app said this type of content isn’t allowed on its platform, and added it would take action against “exploitative begging.” But TikTok failed to explain why it’s reported to have taken a cut of the live streams if they’re not allowed.
  • Doesn’t add up: TikTok said the commission that it takes from digital gifts is significantly less than 70%. But a BBC reporter in Syria tested it out and said TikTok had kept about 70% of the proceeds from his live stream.

Lions and roses… TikTok live-stream viewers can send digital gifts — ranging from roses (which cost a few cents) to lions (which cost $500) — to tip creators or donate to people in need. The BBC found that the Syrian live-stream trend was facilitated by “TikTok middlemen,” who said they worked with agencies affiliated with TikTok in Asia and provided needy families with phones and accounts to go live.

It could be TikTok’s lowest blow… The world’s most popular app is no stranger to accusations of sketchy practices — from boosting harmful content to censoring content at China’s behest. But if the BBC’s findings are accurate, it could be its worst scandal. Over 1B people use TikTok to stay up to date with news, engage with trends, and donate to their favorite causes. This report could permanently bruise TikTok’s reputation.

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