UK’s Advertising Standards Authority has banned seven cryptocurrency adverts.
Papa John’s pizza and 6 other companies were “banned for irresponsibly taking advantage of consumers’ inexperience and for failing to illustrate the risk of the investment,” said ASA.
Companies failed to advise on the risk of investment
ASA found all seven promotions misleading the audience with information about cryptocurrency. A topic most have limited knowledge.
The companies that broke the advertising watchdog rules include:
- Exmo Exchange Ltd: YouTube video description included text that promoted the crypto exchange. The ad appeared on Paul Lucas’ YouTube channel. He mentions Exmo as the sponsor of the August video.
- eToro (UK) Ltd: A paid-for display ad for eToro. The company promoted bitcoin in a ready-made investment portfolio.
- CoinBurp Ltd: A Twitter bio for a cryptocurrency trading platform. The ad contained text which stated, “Register in minutes, deposit instantly, then make super-easy and secure crypto trades.”
- Payward: A digital poster (video) for Kraken, an online cryptocurrency exchange was seen at London Bridge station. The ad contained text which stated, “Buy Bitcoin & Crypto.”
- Luno Money: An in-app ad for Luno, a cryptocurrency exchange service. The ad was seen within the Daily Mail Online app on August 14, and included text which stated, “Invest in crypto for as little as £1”.
- Coinbase Europe Ltd: A paid-for Facebook ad for a cryptocurrency exchange platform. The ad was seen on July 27 and included text which stated, “Buy bitcoin in 5 minutes with as little as £25”.
- Papa John’s GB: A Twitter post and promotional website content on the Papa John’s pizza website. The website stated, “FREE BITCOIN WORTH £10.”
Papa John’s Twitter post stated, “We’ve partnered with @LunoGlobal to offer FREE Bitcoin worth £10 for every pizza bought via our ‘£15 off when you spend £30’” and “TURN PIZZA INTO £10 WORTH OF BITCOIN.”
Limited knowledge of cryptocurrency
Companies such as Payward had a lengthy disclaimer but, ASA argued, “The ad appeared in London Bridge station and was therefore likely to have been seen by a general audience including consumers who did not have financial knowledge and experience of cryptocurrency.”
“Because the ad did not include a clear risk warning for consumers, making them aware that cryptocurrency could go down as well as up, or that the cryptocurrency was unregulated in the UK, we concluded that the ad was misleading,” stated ASA in the Payward ruling.
ASA, however, hopes to bring new guidance on cryptocurrency advertising.
