NEW YORK (AP) – MrBeast’s highly anticipated reality show, “Beast Games,” premiered on Prime Video amidst ongoing controversies surrounding the YouTube star. While aiming to expand his reach and address past criticisms, the show’s partnership with fintech company MoneyLion has drawn scrutiny from consumer advocates.
The show, featuring 1,000 contestants vying for a record-breaking $5 million prize, incorporates a $4.2 million sweepstakes sponsored by MoneyLion. Viewers can scan a QR code for a chance to win, simultaneously being introduced to MoneyLion’s financial tools, including cash advances.
However, critics argue that these cash advances function as payday loans, potentially trapping vulnerable users in cycles of debt due to fees and high interest rates. This partnership raises concerns, especially given MrBeast’s young and impressionable audience.
“These high-cost fintech payday loans, disguised within appealing apps, often lead to debt traps,” warns Lauren Saunders, director at the National Consumer Law Center. “Borrowers end up borrowing to repay previous loans, hindering their financial progress.”
“Beast Games” marks MrBeast’s foray into television, leveraging his YouTube success built on extravagant stunts and large cash giveaways. The show’s $5 million prize is unprecedented in reality TV history, with Donaldson reportedly investing $14 million in production.
The MoneyLion sweepstakes is prominently featured within the show, offering over 1,000 prizes over the next year. While participants must be 18 or older, concerns remain about promoting financial products that could negatively impact young adults.
FILE – Jimmy Donaldson, aka MrBeast, at an MLS soccer match. (AP Photo/Rebecca Blackwell, File)
MoneyLion’s “Instacash” service, offering immediate cash advances for a fee, is considered costly by experts. Andrew Kushner, Senior Policy Counsel at the Center for Responsible Lending, notes that these fees contribute to a “cycle of borrowing” for financially strained individuals.
A 2022 Consumer Financial Protection Bureau lawsuit accused MoneyLion of deceptive practices regarding membership cancellations. MoneyLion maintains that its services promote “long-term financial health” and that fees are transparently disclosed. The company emphasizes the educational aspect of the partnership, providing financial tools and content to participants.
“The Beast Games Giveaway…combines engaging content with accessible financial education,” a MoneyLion spokesperson stated. “Participants gain exposure to MoneyLion’s diverse marketplace of financial products, tools, and content.”
However, critics remain skeptical, arguing that financial wellness tools often mask predatory lending practices. The targeting of young adults, still developing financial literacy, is particularly concerning.
“It’s worrisome to advertise such services to young adults susceptible to marketing tactics,” says Kushner. “The initial excitement can lead to detrimental financial consequences.”
The controversy surrounding the MoneyLion partnership underscores the ethical complexities of influencer marketing and financial products targeting vulnerable audiences. As “Beast Games” unfolds, the debate over responsible financial practices in the entertainment industry continues.
