The United Kingdom Adverting Standards Authority (ASA) has issued a ruling involving Crypto.com and Turtle United NFT project, accusing the two of advertising a promotion without explaining the risk of investing in NFTs, among other issues.
In a December 21 blog post, the regulatory authority confirmed upholding the promotional lawsuit against Crypto.com and Turtle United NFT project. The regulator had accused the two of showcasing a promotion ad without following consumer protection guidelines.
Crypto.com And Turtle United NFT Lawsuit Explained
The NFT marketplace Crypto.com and Turtle United NFT engaged in a lawsuit with ASA in July after the two NFT platforms shortly shared a promotion advert on Facebook to entice users to invest in their new NFT collection.
According to ASA, the accused breached the CAP code for showcasing a misleading advert, which according to the regulatory authority, did not clearly illustrate the risk associated with digital collectibles, minting, or gas fees applied.
ASA maintained that the promotional advert would have at least made consumers aware the NFTs are volatile and could go down or up depending on the market. Moreover, it needed to make clear that past performance or experience does not necessarily give a guide for the future.
In that context, Turtle United NFT floor price is 0.02 ETH, or about $24, according to OpenSea data. The mint price was advertised at 0.2 ETH, plus transaction fees. The ASA concluded the advert was indeed misleading.
ASA’s Verdict For The Promotion Lawsuit
The United Kingdom Adverting Standards Authority has ruled that Crypto.com NFT marketplace and its affiliate Turtle United NFT must not showcase such an advert in the same format again in the future.
Earlier this year, ASA announced it would focus more on crypto advertising and introduce new measures to protect consumers. At the time, ASA demonstrated its seriousness and banned two crypto.com ads for failing to illustrate the risks of crypto investment.
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