U.S. lawmakers' passage of bill poses threat to TikTok creators' livelihoods.

U.S. lawmakers' passage of bill poses threat to TikTok creators' livelihoods.
U.S. lawmakers' passage of bill poses threat to TikTok creators' livelihoods.
  • On Wednesday, a bill signed into law by President Biden was opposed by TikTok creators, who are concerned about being forced to sell the platform to a U.S. company or face a ban.
  • According to Ophelia Nichols, also known as "shoelover99" on TikTok, the app enables small businesses and creators to connect with their community.
  • Lawmakers have argued that TikTok is a national security threat to the U.S.

TikTok user "shoelover99," whose real name is Ophelia Nichols, is one of many online creators and influencers whose income has been put at risk due to the platform's recent ban on certain content.

Nichols, a resident of Alabama, boasts over 12.5 million followers on TikTok, where she creates lifestyle content and delivers rants in her distinctive Southern accent. Her posts frequently garner millions of views, and she primarily earns her income through promotional partnerships with brands such as Home Chef.

After this week's actions in Washington, D.C., Nichols is uncertain about what will happen next.

On Wednesday, President Biden signed a bill that mandates the separation of TikTok from its Chinese parent ByteDance, or else it would face a national prohibition. This legislation was approved by the Senate on Tuesday, along with a package aimed at providing financial assistance to Israel, Ukraine, and Taiwan.

"Nichols stated to CNBC that TikTok enables small businesses and creators to connect with their community, providing them with the opportunity to support their families financially in a way they never have before. The platform has significantly impacted people's lives."

Uncertainty reigns as TikTok faces a potential ban that could last years, and the company may challenge it in court.

In 2023, small and mid-sized businesses that utilized TikTok supported 224,000 jobs, generated nearly $15 billion in revenue, and contributed $24.2 billion to the U.S. gross domestic product, according to an Oxford Economics study funded by TikTok.

President Biden to sign bill that would potentially ban TikTok

TikTok creator Nichols joined other TikTok users in traveling to the Capitol to protest a potential ban. She wanted to voice her opposition and explain to lawmakers how she uses the app for her business. Nichols clarified that TikTok did not ask her to participate in the protest.

"Nichols stated, "Our First Amendment rights are being taken away." He added, "People often fail to comprehend. This platform is a community, a family. You'll discover someone else on the app who shares your interests and brings you joy.""

A CNBC All America Survey from March found that 47% of participants supported a ban or sale, while 30.1% opposed a ban.

TikTok has over 585,000 posts under the hashtags #KeepTikTok and #SaveTikTok, where users express their opposition to the ban. These posts highlight TikTok's importance in providing online entertainment and emphasize the need to preserve the platform for their livelihoods.

ByteDance's $7 million marketing campaign aimed at mobilizing American opposition against the ban employed a range of tactics, including heartfelt testimonial videos featuring TikTok CEO Shou Zi Chew, in-app banners urging users to call their senator, and physical protests staged outside the Capitol.

On Wednesday, after Biden signed the bill, TikTok declared the legislation unconstitutional and stated that it will contest the law in court.

"The company stated in a post on X that they believe the facts and the law support their position, and they will ultimately succeed. The ban would negatively affect seven million businesses and silence 170 million Americans."

TikTok has been viewed as a national security risk by lawmakers due to the possibility that the Chinese government could exploit user data for spying and spreading false information.

'You can still move forward'

On Tuesday, Senator Markwayne Mullin, R-Okla., stated on CNBC's "Last Call" that the legislation isn't a ban, but rather a mandate for TikTok to separate from ByteDance.

"The Chinese Communist Party is using the algorithm they developed for ByteDance and TikTok to push out propaganda, even though you can still keep the platform and move forward, according to Mullin."

Politicians and TikTok creators/influencers have different concerns, with the latter being far removed from the political sphere.

TikTok's algorithm makes it easier for creators to obtain larger audiences on the platform compared to other platforms, as many users have struggled to achieve similar results elsewhere.

"According to V Spehar, host of "Under the Desk News," with over 3 million followers on TikTok, people claim that if TikTok is shut down, they will switch to Meta, but this is not accurate for many individuals."

TikTok provides several ways for monetization, including its Creativity Program, which rewards popular videos longer than a minute, as well as brand partnerships, affiliate sales via TikTok Shop, and virtual "gifts" from followers during livestreams.

YouTube Shorts has recently updated its monetization program, providing users with 45% of ad revenue across multiple posts. Despite this, users have expressed that the payouts are not as substantial as those for long-form videos.

"Spehar stated that each platform has a unique culture, algorithm, and saturation level, making it challenging to break into YouTube's saturated market."

Instagram and Facebook have discontinued their program for short-form video creators, causing complaints from creators who receive high views but little compensation. However, Instagram head Adam Mosseri has suggested that the program may be reinstated in 2024.

Tony Youn, a plastic surgeon with 8.4 million TikTok followers, stated that it is challenging to find a large audience. Despite his videos on various topics such as weight loss, plastic surgery, and humorous clips about traffic being viewed hundreds of thousands of times, he still finds it difficult to attract a significant following.

"As a business person, Youn knows that diversification is necessary, but not everyone has done it."

The TikTok bill has also caused anger among some people, including those who feel that they have smaller voices and will be negatively impacted if it passes.

WATCH: Senator Markwayne Mullin talks passage of Tiktok ban

Senator Markwayne Mullin talks advancement of TikTok forced sale bill
by Zach Vallese

Technology