European consumer organization files complaint against social media platforms over misleading promotion

The European Consumer Organization (BEUC) filed a complaint with the European Commission and consumer authorities against Instagram, YouTube, TikTok, and Twitter. It alleges that these platforms facilitate the ‘misleading’ promotion of cryptocurrencies. In BEUC’s report, titled ‘Hype or harm? The great social media crypto con’ accused social media platforms of using ads and influencers to promote cryptocurrencies, which they deemed an ‘unfair commercial practice’ that puts investors at risk of losses.

Emphasizing the importance of enforcing strict rules on digital asset advertising on social media and preventing influencers from misleading the public, the organization urged the Consumer Protection Cooperation Network to take action in this regard. BEUC also wants the European Commission to assess consumer protection on social media and promote cooperation between consumer groups and the European Supervisory Authorities to protect consumers from misleading promotions of digital assets.

Additionally, BEUC stated that neither the EU’s Markets in Crypto-Assets (MiCA) nor the Digital Services Act (DSA) offers sufficient consumer protection. The complaint was filed with the support of consumer groups in several European countries.