Are TikTok “promotions” legitimate?

On occasion I’ve seen these promotion things pop up in the corner of my screen, and I actually decided to look into it today. It seemed very sketchy, like one of those shitty TEMU things where you’ll never actually get what you’re working towards. It’s asking me to share this with friends [ https://www.tiktok.com/d/1/ZT9F6ymBALwKL-Qvy93/ ], which seems like one of the most obvious scam-bait on the planet. However, it’s coming from TikTok itself so I’m hesitant to immediately call it a scam.

Is it? And if it isn’t, can someone explain how TikTok is able to do this, because it seems easily exploitable and not very profitable for them???