European Consumer Group Files Complaint Against Social Media Platforms for Misleading Crypto Ads.
The European Consumer Organisation (BEUC) and nine of its members from Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia, and Spain have jointly filed a complaint with the European Commission and consumer authorities against Instagram, YouTube, TikTok, and Twitter.
The complaint addresses the platforms’ facilitation of misleading promotions of crypto assets, which pose serious risks to consumers.
BEUC’s report, titled “Hype or harm? The great social media crypto con,” provides extensive evidence of the platforms allowing misleading advertising of crypto assets, in violation of their advertising policies.
The complaint calls for stricter advertising policies and their effective enforcement, the prevention of influencers from misleading consumers about crypto, and the reporting of measures taken to protect consumers from unfair practices.
BEUC emphasizes the need for cooperation between consumer authorities and European Supervisory Authorities to ensure the platforms adapt their advertising policies to prevent the misleading promotion of crypto.
The organization urges social media companies to fulfill their duty in protecting consumers against crypto scams and false promises, given the imminent regulation of crypto through the Market in Crypto Assets Regulation.
The increasing popularity of crypto across the EU highlights the urgency of addressing the issue. With a considerable percentage of consumers owning or having owed crypto assets, it is crucial to protect them from potential financial harm.
Also Read: French Influencers Can No Longer Promote Crypto Assets
