Arsenal Ordered By UK’s Ad Regulator To Remove Misleading Ad On Fan Token

Arsenal Ordered By UK s Ad Regulator To Remove Misleading Ad On Fan Token
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British football club Arsenal FC has been pulled up by the United Kingdom’s Advertising Standards Authority (ASA) over misleading fan token ads. The regulator has ordered the club to immediately remove the ads from their official Facebook account and website.

The club has been charged with “misleading” investors with the advertisement.

Arsenal “trivialised investment in crypto assets and took advantage of consumers’ inexperience or credulity” and had “failed to illustrate the risk of the investment,” the advertisement regulator said while passing the order. It also added that the football club had also not made it clear that the ‘token’ being advertised was in fact a crypto asset.

All throughout the current year, a number of sports clubs and organizations have started to issue club fan tokens globally. This is being viewed as a strategy by such clubs to use this digital asset to create a new source of revenues. Additionally, they also intend to use the blockchain based technology to bring their fans closer together.

Such club fan tokens are mostly powered by Socios.

Other famous European football clubs that have joind this group of clubs issuing fan tokens include Barcelona, Juventus, and Paris Saint Germaine. All these football clubs had launched their own tokens earlier in the year.

According to the UK advertisement regulator, Arsenal put up an advert on its webpage on August 6 and on its Facebook page on August 12. In the advertisement, the club requested fans to download the Socios app which would enable the fans to have a say in which type of song they would like to hear when the club won home games.

The AA however did not agree with this approach of the club. It said that the club had assumed that fans and users were already familiar with the workings of the digital token.

The club takes its “responsibilities with regard to marketing to our fans very seriously. We carefully considered the communications to fans regarding our promotions and provided information regarding financial risks,” an Arsenal spokesperson told the media in a statement about the issue.

The order from the ASA to remove the advertisement from the club’s website and its social media page has been complied with by Arsenal.

This latest action against Arsenal depicts the supposedly zero-tolerance stance that the regulator has adopted against all forms of advertisements that are in anyway linked to cryptocurrencies in the UK.

A petition to with the advertisement regulator of the country to ban adverts on cryptocurrencies was filed by a London lawmaker earlier this year, according to reports. The petition was prompted by Floki Inu’s ads that flooded the transport system of London.

As digital currencies cut their way into the mainstream financial sector, the crackdown on Arsenal’s progress towards blockchain and digital tokens foreshadows one or more linked incident.

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