Arsenal Loses Appeal Against UK Advertising Watchdog Over Fan Token Promotion

The UKs Advertising Standards Authority (ASA) has stood by its initial judgment against Arsenal Football Club’s promotional drive for their fan token, rejecting all appeals.

The promotional content, featured on Arsenal’s Facebook page and website in August, was cited for inadequacies in three significant areas. These concerns revolved around a cryptocurrency product known as “Arsenal Fan Tokens,” which the ASA determined were being promoted in a misleading and irresponsible manner.

First, the ASA found all advertisements irresponsible for failing to acknowledge consumer unfamiliarity with cryptocurrency and minimizing the inherent risks of such investments. Second, the watchdog highlighted that the advertisements were deceptive in not adequately conveying the investment risks. Third, the ASA deemed the advertisements misleading for not explicitly stating that the promoted tokens were cryptoassets, only obtainable by creating an account and trading them using another cryptocurrency that required purchase.

Arsenal, collaborating with fan token provider Socios, contested the ASA’s rulings on all three points. The football club’s defense emphasized that “fan tokens are utility tokens intended to foster fan engagement and are therefore fundamentally different from cryptocurrencies like Bitcoin, which are virtual currencies designed to function as a payment method…”.

The Gunners drew flak for promotions showcasing supporter tokens, with governing bodies contending that the team minimized the hazards tied to digital currency ventures. Although Arsenal insisted their intended viewers were well-versed in the crypto sphere and the tokens granted fans input on club matters, the Advertising Standards Authority (ASA) dissented. The ASA stressed that the advertisements clearly entailed financial participation and that Arsenal had insufficiently underscored the possible drawbacks. Consequently, the promotions were prohibited, and the team was cautioned to exercise greater accountability in subsequent campaigns.