SNEAK PEEK
- The Advertising Standards Authority (ASA) of the United Kingdom continues to penalize businesses and institutions that violate advertising standards.
- FC Barcelona was found to have infringed the law by running a fake promotion ad on Google.
- The ASA questioned if the advertisement was deceptive since it did not clearly state the perils of NFTs or that there would be fees and limits on ownership rights.
According to the UK Advertising Standards Authority, FC Barcelona broke advertising standards by neglecting to mention the danger of investing in NFT in its marketing advertisement. The team also had to reveal the auction house costs, sales tax, and third-party wallet transfer fees that were used.
FC Barcelona and the UK Advertising Standards Authority went to court in July after the Spanish La Liga Football team paid for an advertisement promoting their non-fungible project at Sotheby’s. The advertisement stated:
July 29, 2022, NFT Johan Cruyff. Don’t forget about the live auction. FC Barcelona’s first NFT Masterpiece. The premiere date is July 29. In 1973, Johan Cruyff’s “impossible aim” was achieved. Immortalized and available as a one-of-a-kind NFT.
In its justification, Barcelona maintained that because NFTs are not financial goods, purchasing one should not be deemed an investment and hence immune from financial restrictions. The club claimed that the terms and conditions were available on its website, but due to the character limit on the Google ad, they were omitted.
On the other hand, the ASA said that because NFTs are unregulated crypto assets that are dangerous and complicated, clients needed enough information before making a purchase. While the ASA agreed with Barcelona’s claim that NFTs are collectibles, it also stated that NFTs may be bought, owned, and sold, making them an investment.
