TikTok pays users to shop, invite friends as US ban looms

TikTok has been working to boost users’ time spent and develop shopping habits ahead of its possible ban from US app stores on January 19

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TikTok has been trying to embed itself more in users’ lives ahead of a potential ban in the US next month, which it is challenging in court. Photo: TNS

Published: 11:30am, 11 Dec 2024

TikTok is offering users hundreds of dollars to spend time in the app, invite friends to join and purchase products on TikTok Shop, in an effort to expand the business as quickly as possible ahead of its possible ban in the US.

TikTok users recently began seeing a new “limited time offer”, which compensates them in the form of TikTok Shop credits. The promotions are appearing on TikTokers’ “For You” page, the main feed they see when they open the app. On Friday, a major court ruling upheld a law that could ban TikTok nationwide as soon as January.

Users can earn US$50 for recruiting first-timers to sign up for TikTok and unlock an additional US$350 in bonuses if they bring in more. They can also make money by checking into the app every day for a week, and by scrolling through 10 TikTok Shop items five times per week. Those who click through the offer can score an additional US$80 in coupons to spend after making a purchase on TikTok Shop.

TikTok did not immediately respond to a request for comment. The app, owned by China-based ByteDance, has been working to boost users’ time spent and develop shopping habits ahead of its possible ban. Earlier this year, in a separate move to capture new users, TikTok started requiring people to download the app if they want to watch TikTok videos others share. President Joe Biden signed a law in April requiring ByteDance to sell the app to an American owner by January 19 to address national security concerns, or face a ban.

Regulatory roadblocks have done little to slow down ByteDance’s growth plans. The company had aimed to increase the volume of merchandise sold on the app thorough TikTok Shop tenfold, to US$17.5 billion, Bloomberg reported in January. ByteDance has only increased its ambitions since. TikTok Shop tripled its US sales to more than US$100 million on Black Friday. Shop also went live in Spain on Tuesday, its first stop on a wider European roll-out.