EU watchdog targets crypto ads on Instagram, Youtube, TikTok, Twitter
The largest European consumer rights group alleges crypto marketers in popular social networks the misleading promotion and thus exposing consumers to serious harm. A certain complaint was filed with the European Commission.
On June 8, the European Consumer Organisation (BEUC) published a report ‘Hype or harm? The great social media crypto con.’ In a 20-page document, BEUC states that consumers are not fully aware of the risks associated with crypto.
Today BEUC & consumer groups in 8 countries are taking action against TikTok, Instagram, Twitter & YouTube for facilitating the misleading promotion of crypto assets on social media . We've filed a complaint with @EU_Commission and consumer authorities: https://t.co/b6NYsBl4VM pic.twitter.com/w5iLMy4h1i
The report draws examples from Instagram, Youtube, Twitter and TikTok, calling them “key players” in crypto advertising. In a case with Facebook, it notes that crypto ads skirt rules, forbidding the promotion of non-licensed financial platforms. The announcement stated:
With Twitter, the report nods at Elon Musk’s move to instate Doge, a mascot for Dogecoin, despite the platforms’ own prohibition of any crypto ad. BEUC also mentions so-called “finfluencers” as “an important source of information” for a younger audience.
Related: EU officials want all AI-generated content to be labeled
Despite the single national regulators' efforts to combat misleading promotion, the problem still lacks a complex approach. According to the report, there is already a legal base to take EU-level measures — an Unfair Commercial Practices Directive (UCPD), and there is a body to lead the enforcement — an EU Consumer Protection Cooperation Network (CPC Network):
The report calls for the
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