The Advertising Standards Authority in the United Kingdom has banned Floki Inu’s ads, claiming that the ads “irresponsibly exploit consumer fears of missing out and trivializing electricity bills.” death”.
Initially, Floki Inu poster ads were seen along the London Underground, each featuring a cartoon dog wearing a Viking helmet. The large bold text reads, “Missed Doge? Get Floki,” while the smaller text warns the public that their investments can rise and fall in value, emphasizes that the cryptocurrency is not regulated in the UK.
The ASA believes that the use of the cartoon dog Shiba Inu and the bold statement took advantage of consumers’ “fear of missing out (FOMO)”, reducing crypto investment risks and exploiting inexperience. of consumers. In its defense, Floki Ltd., which trades as Floki Inu, said it had submitted the ad to the Advertising Practices Commission and received its approval before displaying the ad.
They don’t see the logo as a trivial investment product and it’s their company logo. The community felt that, if the Elon Musk-inspired logo was omitted, consumers would get a clear understanding of the company behind the ad. The ASA acknowledges this, but remains adamant that the use of animated images has dwarfed the investment.
Are you a “savvy consumer?”
Floki Inu says that many cryptocurrencies start out as jokes or memes, claiming that the ad’s intended audience is “Informed Consumers”. This “informed consumer” is said to have knowledge of the cryptocurrency market, how it works, and the inherent risks of investing. The UK watchdog has rejected the “informed consumer” hypothesis, arguing that cryptocurrencies have a high profile, news presence in the media enough to make even Uninformed consumers must also be curious, given the presence of advertisements at transport sites in London.
Floki states that the warning regarding the potential loss is aimed at general consumers, who would view the ad phrase “Missed Doge, Get Floki, as a pun, but need further investigation to understand.” correct advertisement. Regarding the size of the warning text, the ASA believes it is too small and the message that the ad conveys is the need to buy Floki.
According to the ASA, marketing Floki Inu using the phrase, “Missed Doge? Get Floki,” implies that Dogecoin also falls under the same category, leading consumers to believe that Floki Inu will show a similar uptrend. Floki Ltd. states that they do not tout cryptocurrencies as a premium investment or promote immediate consumer urgency to invest.
The ASA said that because cryptocurrencies are a relatively new product, the public may not be aware of the tax that needs to be paid. The agency also pointed out that there is no information on the Floki Inu website about the payment of CGT. The Floki community states that they were not informed of the possibility of Capital Gains Tax being levied on crypto investments, which would need to be mentioned in the ad.
Similar Floki Inu ads banned by watchdog
The ASA says that ads must not appear in a similar format in the future. They reminded Floki Ltd. does not exploit the fear of missing out, does not trivialize crypto investments, and informs consumers of the possibility of CGT settlement when crypto is obtained, in accordance with rules 1.3 and 14.1 of the CAP Code: “Marketing communications must be prepared with a sense of responsibility towards consumers and society,” and “Offerings of financial products must be laid out in a way that is easily understood by the audience. Marketers must ensure that they are not taking advantage of the consumer’s lack of experience or credibility.”
Floki said it covered every basis of the CAP code and ASA requirements before launching the campaign, feeling that the UK watchdog acted unfairly in revising the guidelines. and apply back to Floki Inu ads. However, they have committed to using the ASA’s revised guidelines for future campaigns.
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https://beincrypto.com/uk-advertising-authority-bans-floki-inu-floki-adverts/ Advertising Agency UK Bans Floki Inu (FLOKI) Advertising