UK’s advertising watchdog Advertising Standards Authority (ASA), recently ruled against two crypto advertisements of Arsenal’s fan tokens ($AFC).
Arsenal has infringed the UK’s advertising code, according to the ASA, after a review of $AFC’s adverts from August. According to the ASA, the fan token commercials “trivialized investment in cryptoassets” and were “misleading” because they failed to mention investment risk.
Arsenal’s “irresponsible” and “misleading” advertisements
Arsenal began advertising efforts for the club’s fan token on its website and social media network, Facebook, in early August. The football club gave fans the option to vote on club decisions when they purchased $AFC tokens, stating that the number of tokens a fan owns is directly proportional to the value of their vote.
However, in order to obtain $AFC, supporters were had to first purchase Chiliz, a digital currency, through the crypto platform Socios.
The ASA ruling specified that Arsenal’s Facebook promotions “did not make clear the ‘token’ was a crypto-asset, which could only be obtained by opening an account and exchanging with another cryptocurrency which had to be purchased”. Additionally, the watchdog determined that Arsenal had broken the updated advertisement rules in the UK and that, “the ads must not appear again in the form complained about”
Arsenal’s defence
Following the ASA verdict, the football club proceeded to defend itself, claiming that it had ensured “well researched” connection with its followers. Arsenal claimed that price volatility risks were factored into their website promotion. However, they didn’t include it in their Facebook marketing for the fan token.
“dependent on supply and demand, and can therefore go up as well as down…should be aware that they could lose some or all of their money invested”, the club warned on their website promotions.
According to the BBC, the club also intends to seek a “independent review” of the ASA’s decision in order to have a better understanding of the “ASA’s current position.”
