The FTC enforces laws that require truth in advertising, such as rules that say people must say when they have been paid for endorsements or reviews.
The U.S. Federal Trade Commission (FTC) is looking into several unnamed crypto firms for deceptive or misleading crypto advertising. according to a report from Bloomberg.
Juliana Gruenwald Henderson a spokeswoman for the FTC said in a statement. “We are investigating several firms for possible misconduct concerning digital assets,”
Henderson refused to say more about which companies are being looked into or what made the Commission start looking into things.
Federal Law says that Ad must be Truthful
FTC According to the website, “when consumers see or hear an advertisement, whether it’s on the Internet, radio or television, or anywhere else, federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scientific evidence.”
The agency enforces laws that require truth in advertising, such as rules that say people must say when they have been paid for endorsements or reviews.
FTC joins SEC quest for crypto promoters
The U.S. Securities and Exchange Commission (SEC) also has rules about what people selling securities must say about them.
In October, the agency used these rules to crack down on celebrities who promoted the EthereumMax (EMAX) token. Kim Kardashian was one of the celebrities who was charged.
The SEC says that Kardashian didn’t tell them about a $250,000 payment she got for putting out an Instagram post that told potential investors how to buy EMAX tokens.
Read More: Grayscale reveals SEC queries on XLM, ZEC, ZEN Securities
Kardashian neither admitted nor denied the regulator’s findings, but she did agree to pay $1.26 million to settle the charges and not promote crypto securities for three years.
Truth in Advertising (TINA), a U.S. consumer watchdog group, said in August that it was looking into 17 celebrities who promoted non-fungible tokens (NFTs) on their social media channels and found that “it is a field full of lies.”