TikTok is reportedly compensating some users to spend more time on the app, encourage their friends to sign up and promote purchases through its TikTok Shop.
The effort, as reported by Bloomberg, comes amid mounting scrutiny ahead of a potential ban in the US. Last week, a court upheld a law requiring TikTok's Chinese parent, ByteDance, to sell the app to a US-approved buyer by mid-January. (TikTok has since filed for an injunction to stop the ban).
Lawmakers on both sides have shared concerns that TikTok, which has more than 150 million American users, could be a threat to national security due to its ties to China. At the same time, the company has been working to attract new users and encourage people to spend more time on the platform.
The report said some TikTok users have started to see a "limited-time offer" on their main feed to receive TikTok Shop credits to entice new users to sign up. For example, these people can earn about $50 for recruiting new members and $350 in bonuses for bringing in more, according to Bloomberg. Other ways to make money include checking into the app daily for a week and scrolling through a handful of TikTok Shop items, the report said.
The company did not respond to a request for comment.
TikTok also continues to promote its TikTok Shop, where it sells products across fashion, beauty and home goods from both startups and well-known brands, including Crocs and Estee Lauder. In a press release, the company said the shop saw a 165% year-over-year increase in shoppers during Black Friday and Cyber Monday weekend. On Black Friday, TikTok Shop hit $100 million in sales in one day -- three times as much as the previous Black Friday.