ASA ‘red alert’ crackdown rips down cryptocurrency ads

crypto 2The ad watchdog has delivered on a major crackdown on cryptocurrency marketing, outlawing seven separate campaigns – including one by pizza brand Papa John’s – after branding crypto-asset ads a “red alert priority issue”.

In November, the Advertising Standards Authority confirmed it was investigating a number of crypto-asset ads across different media, where it had concerns about the lack of appropriate risk warnings; the trivialisation of investments in cryptocurrency; ads taking advantage of consumers’ inexperience or incredulity; and irresponsible advertising, such as creating a sense of urgency to invest.

The rulings include a Papa John’s Twitter post by that offered “free Bitcoin” in partnership with cryptocurrency exchange Luno. The ASA ruled the ad had irresponsibly trivialised investment in cryptocurrency and exploited consumers’ lack of experience.

Other brands which were fingered for the same breach of the rules were CoinBurp, Coinbase, Exmo Exchange, Luno (again), Kraken, and eToro.

When it revealed its strategy, the ASA said: “We’re aware that people are concerned about crypto-asset advertising – particularly regarding cryptocurrencies and ‘non-fungible tokens’ (NFTs). This is a ‘red alert’ priority issue for us and we’re taking action.

“Crypto-assets have exploded in popularity in recent years, but there’s a real danger that people may be drawn in to invest life savings that they later lose based on poor understanding. We recognise the important role we play in regulating ads to ensure they don’t mislead consumers about a product’s risks or act irresponsibly in their promotion.”

However, the watchdog has been clear that there is a separation between ads for legal crypto investments and illegitimate scam ads.

On the latter, it is already taking action where it can through the Scam Ad Alert system. This was set up in June in partnership with the major digital advertising and social media platforms, including Facebook and Google, to help tackle bogus ads that leave consumers out of pocket, specifically online paid-for ads linking to fraudulent content, particularly crypto investment.

Even so, a recent Which? investigation claimed the tech giants were failing to act quickly enough to remove ads from unauthorised firms – even after regulators have issued public warnings about them – leaving them to “run riot” and swindle consumers out of billions of pounds.

Which? found dozens of rogue investment sites advertising on Google and Bing that were already on the Financial Conduct Authority warning list, fuelling claims that there are significant flaws in the monitoring processes.

On the seven rulings, ASA director of complaints and investigations Miles Lockwood said: “Our rulings published today and over the next few weeks will shape follow-up enforcement work in the new year to bring all crypto-assets ads into line with our expectations and will form the basis of updated guidance.”

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