Social Media Giants Under Fire for Crypto Promotions

The European Consumer Organization (BEUC) is taking a stand against alleged misleading cryptocurrency promotions facilitated by major social media platforms. TikTok, Twitter, Instagram, and YouTube have all found themselves in the organization’s crosshairs, with the BEUC filing complaints with the European Commission and other consumer authorities across the EU.

Disrupting Misleading Crypto Advertising

The BEUC has accused these social media giants of allowing the rampant proliferation of deceptive crypto ads on their platforms. Both advertisements and influencers have been flagged in the BEUC’s report titled “Hype or Harm? The Great Social Media Crypto Con”. The organization asserts such practices unfairly expose consumers to potential harm, particularly significant financial loss, as cryptocurrency remains a high-risk investment not suitable for all consumers.

We are turning to the authorities in charge of protecting consumers to ensure Instagram, Youtube, Tiktok, and Twitter fulfil their duty to protect consumers against crypto scams and false promises.

The BEUC has a history of consumer advocacy dating back to 1962 and today brings together 45 consumer protection organizations from 32 European nations. It has lodged these latest complaints in collaboration with nine member organizations across Denmark, France, Greece, Italy, Lithuania, Portugal, Slovakia, and Spain.

Strengthening Crypto Ad Policies and Protecting Consumers

In its report, the BEUC argues there is plentiful evidence of misleading crypto promotion across the targeted platforms, a situation that contradicts their own ad policies. The organization is urging the Consumer Protection Cooperation Network, a collaborative body of public authorities skilled in consumer protection, to demand changes from these companies.

The BEUC is steadfast in its call for the platforms to adopt and enforce more robust advertising policies for crypto promotion. It also advocates for measures to inhibit influencers from misleading consumers about the volatile and speculative nature of crypto assets.

BEUC’s Director General, Monique Goyens, emphasized the growing trend of consumers lured by social media ads and influencers promising quick riches through crypto investment, but warned that these promises are frequently misleading:

“Consumers are increasingly being promised ‘get rich quick’ investments by ads and influencers on social media. Unfortunately, in most cases, these claims are too good to be true.”

Although Goyens acknowledged the forthcoming EU’s Markets in Crypto Assets (MiCA) legislation that will regulate the sector, she also highlighted the loophole that currently allows social media firms to profit from crypto advertising at the consumers’ expense.

As a result, the BEUC is petitioning relevant authorities to ensure that Instagram, YouTube, TikTok, and Twitter uphold their duty to shield consumers from crypto scams and false promises.

Syncing with Global Moves

BEUC’s move coincides with the UK’s Financial Conduct Authority’s (FCA) introduction of stricter advertising rules for companies marketing crypto assets. This aims to forewarn investors about potential risks, ban ‘refer a friend’ bonuses, and enforce a cooling-off period for first-time crypto purchasers.