China’s TikTok Floods America with Ads for Predatory Payday Loan Companies

Advertisers on Chinese-owned TikTok are reportedly using underhanded tactics to promote payday loans that experts say could violate deceptive advertising laws. One expert commented on the ads flooding the platform massively popular with teenagers, saying, “At best, these videos are designed to make you give up information that you shouldn’t that will result in more solicitations. At worst, this is a complete scam designed either to take your money or information for fraudulent purposes.”

The New York Post reports that companies are using China’s TikTok to advertise sketchy payday loan businesses on the teen-focused platform in a move that could be in violation of deceptive advertising laws. Some of the ads promise “almost instant” five-figure deposits to customers despite bad credit while others attempt to imply they’re part of government “inflation programs,” utilizing logos from news organizations like CNN.

Those looking for quick cash who click on links in many of the ads are asked for personal info including their Social Security and bank account information. John Breyault, vice president of advocacy group the National Consumer League, told the Post: “At best, these videos are designed to make you give up information that you shouldn’t that will result in more solicitations. At worst, this is a complete scam designed either to take your money or information for fraudulent purposes.”- READ MORE