EU Consumer Watchdog Slams Instagram, TikTok for Enabling Crypto Scams
The European Consumer Organization (BEUC) has released a report accusing leading social media platforms including Instagram, TikTok, Twitter, and YouTube of enabling scams related to digital assets.
In a 20-page report, the watchdog categorized digital assets as highly risky and prone to scams, highlighting the impact cryptocurrencies have on consumers as well as the role of so-called crypto influencers.
The watchdog emphasized that social media platforms like Instagram and TikTok maintain loose policies, which allow scammers to target unsuspecting teenagers.
"The approach of social media platforms to crypto advertising is very dubious and several of them still insufficiently enforce their internal policies," the BEUC wrote.
"Our research found ample evidence of misleading promotion for crypto on Instagram, YouTube, TikTok, and Twitter despite the social media platforms’ advertising policies."
The BEUC is a group of 45 independent consumer organizations in 31 countries representing these institutions in the EU and defending the interests of consumers.
The BEUC report calls on the European network of national consumer authorities (CPC-Network) to act and enforce stricter advertising policies on these platforms.
The group also asked CPC-Network to "require the concerned social media platforms to include in their Terms of Use a prohibition for influencers to promote crypto products, and to adopt appropriate mechanisms to prevent consumers from being exposed to unfair commercial practices related to these products."
The new report coincides with the EU being at the forefront of crypto legislation, approving Markets in Crypto Asset (MiCA) legislation just recently, which aims to counter the "wild west" mentality prevalent in the
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