According to a BBC investigation released tuesday, TikTok makes money via livestreams where Syrian refugees beg for cash donations.
The investigation discovered that some Syrian refugees who livestreamed were expecting to receive $1,000 per hour but were actually receiving much less.
Twelve families were working with "TikTok middleman" Hamid Al-Alwa, who moves one smartphone around the camp, when the BBC visited a Syrian refugee camp.
The value of the gifts delivered to the refugees is significantly lowered by the time the money reaches Hamid's bank account, according to Hamid, who told the BBC that he assists in managing the families' accounts.
"If we get a lion as a gift, it's worth $500," Hamid said. "By the time it reaches the money exchange in Al-Dana, it's only $155."
He's referring to an animated lion that appears on the screen of a livestreamer after a large gift is delivered.
The BBC authorized one of its correspondents to broadcast live from his TikTok account in Syria to test TikTok's gifting mechanism. The BBC made a $106 donation to the journalist's account through TikTok's live-gifting system. According to the report, the journalist received $33.03.
According to the BBC, after commissions from money transfer shops and middlemen, a family would receive only $19 from a $106 donation.
"We are deeply concerned by the information and allegations brought to us by the BBC, and have taken prompt and rigorous action." TikTok said in a statement obtained by the BBC.
When asked by the BBC how much money it makes from livestream presents, TikTok declined to answer.
Additionally, TikTok informed the BBC that it forbade begging-related content on its platform and pledged to strengthen its "global policies around exploitative begging."
On TikTok, users may send live gifts by using virtual currency. These presents are converted to "rate or show your appreciation for an item of User Content that is uploaded or streamed by another user." on the recipient's account, which can subsequently be exchanged for money, in accordance with TikTok's policy on virtual objects, and can be used to "diamonds"
"Diamonds are based on the Gifts a Content Provider receives, at a rate of conversion to be determined by us from time to time in its absolute and sole discretion," TikTok writes on its website.
It's unknown how much TikTok earns in withdrawal commission.
According to analytics firm Sensor Tower, TikTok, the world's fastest-growing social media app, has produced more than $6.2 billion in gross revenue from in-app purchasing since its launch in 2017.
