Cryptos: BEUC denounces misleading advertisements and calls on social networks to act

The European Consumers’ Bureau (BEUC) filed a complaint with consumer protection bodies in the European Union on Thursday. The lobby points to the multiple advertisements related to cryptos and carried out by influencers. BEUC believes that misleading advertisements expose consumers and urges social networks to take adequate measures to protect them.

Profusion of misleading advertisements: BEUC’s bitter observation

Ads on cryptos can have harmful consequences when left unchecked. Internet users and even some investors can fall for aggressive advertising. It is convinced of this, and in order to protect investors, that Belgium announced new crypto regulations last April.

Now it’s BEUC’s turn to shout its fed up and call on EU consumer protection authorities for help. In a press release, Monique Goyens, the group’s general manager, points out the proliferation of aggressive advertisements. “Crypto promotion is everywhere, you see it on prime time TV,” she first said.

She goes on to say, “Consumers are increasingly being promised ‘get-rich-quick’ investments by social media ads and influencers… Unfortunately, in most cases, these claims are too good to be.” true and consumers run a high risk of losing a lot of money…”. For Monique Goyens, consumer protection authorities must take measures to put an end to this ongoing phenomenon.

Enforce stricter rules to protect consumers

If the recently adopted MiCA regulations require exchanges to hold a license before the distribution of any advertising, BEUC considers in its complaint that additional measures are necessary to regulate the promotion of these digital currencies. The federation of 43 consumer associations, from European countries, urges social networks to review their policies on crypto ads.

BEUC wants YouTube, TikTok, Instagram, Twitter and all social networks to ban influencers from promoting crypto. Monique Goyens says she expects social media to ”fulfill their duty to protect consumers against scams and false promises”.

BEUC’s complaint comes after the many damages caused by aggressive advertisements to investors. The significant losses suffered by bitcoin investors after an advertisement in which an influencer appeared are remembered.