The United Kingdom’s advertising regulatory body, the Advertising Standards Authority (ASA), has affirmed its judgment against Arsenal Football Club’s promotional efforts for their supporter token, dismissing all challenges to the original verdict.
In August, Arsenal faced criticism for promotional content on its Facebook page and website that was found lacking in three areas. The promotions, all connected to a digital currency product known as ‘Arsenal Fan Tokens,’ were deemed irresponsible and deceptive by the ASA.
First, all advertisements were considered irresponsible due to their exploitation of consumers’ lack of knowledge and their minimization of the inherent dangers associated with cryptocurrency investments. Second, it was highlighted that the advertisements were misleading as they failed to sufficiently clarify the investment risks. Third, they were deceptive in their omission of the fact that the promoted token was a crypto asset, only obtainable by establishing an account and exchanging it with another cryptocurrency – which itself would require purchase.
Arsenal, in collaboration with fan token provider Socios, contested the ASA’s ruling on all three points. The football club’s primary argument revolved around the notion that “fan tokens are a utility token employed for supporter engagement and therefore substantially distinct from cryptocurrencies such as Bitcoin which are virtual currencies utilized for payment…”
The North London football team, Arsenal, faced scrutiny from the UK’s advertising watchdog, the ASA, regarding their promotional activities for fan tokens. Although the club maintained that they had been transparent about potential downsides and aimed their efforts at supporters already knowledgeable about digital currencies, the ASA found their arguments unconvincing.
Specifically, the ASA challenged Arsenal’s claim that cryptocurrency is readily comprehensible, highlighting that the promotional materials clearly suggested fans should make financial commitments. Consequently, the ASA prohibited the advertisements, cautioning that subsequent campaigns must not minimize the hazards linked to cryptocurrency or exploit supporters who may not completely comprehend the intricacies of this market.
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