The European Consumer Organisation (BEUC), regarded as the largest consumer rights group in the European region, is taking action against TikTok, Instagram, Twitter and YouTube for allegedly misleading promotion of crypto on social media.

BEUC is an umbrella group for 46 independent entities across 32 countries, and on June 8, the organization published a report titled: “Hype or harm? The Great Social Media Crypto.” Th organization states that consumers are not completely aware of the risks associated with currency trading and crypto in general.

In the report, BEUC believes that “TikTok, Instagram, Twitter & YouTube are responsible for allowing misleading advertisements of crypto to multiply through ads & influencers. This is an unfair commercial practice, exposing consumers to serious harm (loss of significant amounts of money).” Facebook, on the other hand, is noted to have forbid the promotion of non-licensed financial platforms, while the other social media networks have been “key players” in crypto advertising.

While there were efforts of national regulators in retaliating against misleading promotion and advertising, the issue continues to lack a complex approach. The report states that a legal base is already present to take EU-level measures, coined the Unfair Commercial Practices Directive, and a body to lead such enforcement also exists by the name of the Consumer Protection Cooperation Network (CPCN).

Sources:

https://cointelegraph.com/news/eu-watchdog-targets-crypto-ads-on-instagram-youtube-tiktok-twitter

https://www.reuters.com/technology/instagram-youtube-tiktok-twitter-target-eu-crypto-advertising-complaint-2023-06-08/

https://www.abc.net.au/news/2023-06-08/eu-crypto-advertising-complaint-twitter-instagram-youtube/102458246

https://twitter.com/beuc/status/1666705623247880192