FC Barcelona becomes the latest club to be penalized for NFT ads
ASA continues its crypto crackdown with measures against three advertisers.
FC Barcelona Christmas advert 2020
FC Barcelona has become the latest football club to face an advertising ban from the Advertising Standards Authority (ASA) non-fungible token (NFT).
The advertising regulator took action against the football club for a paid Google search result of an NFT sold at Sotheby’s. It contained the text “29. July 2022 – NFT Johan Cruyff. Don’t miss the live auction. The first NFT masterpiece of FC Barcelona. Premiere July 29. Johan Cruyff’s ‘impossible goal’ in 1973. Immortalized and offered as an exclusive NFT.”
ASA challenged whether the advertisement was misleading because it did not make clear the risks of NFTs, or that there would be fees involved and restrictions on ownership rights.
Arsenal Football Club faced a similar sanction in 2021 for a set of ads promoting their cryptofan tokens. At the time, the ASA said the ads downplayed the crypto and did not clearly state the risks.
In Barcelona’s defence, it argued that NFTs were not financial products, so buying one should not be considered an investment and therefore exempt from financial rules. The club added that the terms and conditions were available on their website but that the character limit on the Google ad meant it was left out of the ad.
However, the ASA hit back, saying that since NFTs were unregulated crypto-assets that are risky and complex, customers needed enough information before making a purchase. And while Barcelona’s argument that NFTs are collectibles was recognised, the ASA said NFTs could also be bought, held and sold, making them an investment.
Encryption continues
Along with Barcelona, the ASA took action against two other crypto ads this week as part of the regulator’s ongoing crackdown on crypto advertising.
The first was for cryptocurrency trading platform Crypto.com for a Facebook ad that the ASA claimed failed to make clear the risks of NFT trading or that fees were charged. Like FC Barcelona, Crypto.com rejected the idea that buying an NFT was an investment and added that the terms and conditions were available only excluded from the ad itself.
The NFT project Turtle United NFT was also sanctioned for a paid Facebook ad and subsequently failed to respond to the investigation. The ASA said it was “concerned by Turtle United NFT’s lack of response and apparent disregard for the Code”.
In March, the regulator asked over 50 Crypto advertisers to change their ads.
