Arsenal FC’s Crypto Fan Tokens Break Advertising Rules, Says UK Regulator

The Advertising Standards Authority (ASA) in the UK has ruled that a website and Facebook post by Arsenal Football Club promoting its cryptocurrency fan tokens was against the country’s marketing rules.

It said that the advertisements have “failed to illustrate the risk of the investment” and that they “must not appear again in the form complained about.” 

Arsenal FC has said it will be seeking an independent review of the ruling, justifying that it had included the required information on the financial risks fans undertook by purchasing the tokens.

According to the BBC, several top-flight clubs offer similar fan tokens, and have been criticized for inadvertently encouraging fans to engage in risky and unregulated investments through their cryptocurrency promotions. 

Tim Payton, a board member on the Arsenal Supporters Trust, explained that he felt “clubs should not be allowed to use football’s popularity to push an inherently high-risk product,” such as crypto-based assets. 

The ASA ruling cited Arsenal FC’s marketing push as irresponsible, saying that the club “took advantage of consumers’ inexperience” with cryptocurrency. It deemed the promotion as misleading since the advertisements didn’t illustrate the risk of investment—though the club argued otherwise.

The club said its advertisements did come with a warning, stating: “We advise you to spend only what you can afford and seek independent financial advice if required.” The main webpage also included a warning that buyers “could lose some or all of their money invested.” 

“We take our 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,” Arsenal FC told the BBC.

[via BBC, cover image via Arsenal FC]