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The largest European consumer rights group accused crypto marketers in popular social networks of misleading promotions and thus causing serious harm to consumers. A definitive complaint was lodged with the European Commission.
On 8 June, the European Consumer Organization (BEUC) published A report ‘Promotion or harm? Great social media crypto con.’ In a 20-page document, the BEUC said that consumers are not fully informed about the risks associated with crypto.
Today BEUC and consumer groups in 8 countries are taking action against TikTok, Instagram, Twitter and YouTube for promoting misleading promotion of crypto assets on social media. have complained to @EU_Commission and consumer authority: pic.twitter.com/w5iLMy4h1i
– The Consumer Voice (@beuc) June 8, 2023
The report cited examples from Instagram, Youtube, Twitter and TikTok, calling them “major players” in crypto advertising. In Facebook’s case, it notes that crypto advertising skirts rules prohibiting the promotion of unlicensed financial platforms. the announcement where did it go,
“TikTok, Instagram, Twitter and YouTube are responsible for allowing the misleading advertisements of crypto to multiply through advertisements and influencers. This is an unfair business practice, which can cause serious harm (loss of significant amounts of money) to consumers. ) exposes.”
Along with Twitter, the report nods to Elon Musk’s move to install Doge, a mascot for Dogecoin, despite the platform’s own prohibition of any crypto advertising. BEUC also cites so-called “fininfluencers” as “an important source of information” for young audiences.
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Despite the efforts of single national regulators to combat misleading propaganda, the problem still lacks a comprehensive approach. According to the report, there is already a legal basis for taking measures at EU level – an Unfair Commercial Practices Directive (UCPD), and a body to lead enforcement – an EU Consumer Protection Cooperation Network (CPC Network). ):
“The problem continues to be addressed primarily at the national level, while it calls for CPC networks to act collectively on the basis of the UCPD and target platforms used for the promotion of crypto assets and related services.” A common approach will be needed.”
The report calls on CPC-Networks to request that social media platforms implement stricter conditions in their advertising policies, to include in their terms of use a prohibition for influencers to promote crypto products, and to report on the effectiveness of the measures. Submit a report to the European Commission in at Place.
Meanwhile, in France, the Senate approved an amendment allowing registered crypto companies to hire social media influencers for advertising and promotional purposes.
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