Facebook are continuing to change their policies. This time they are updating their advertising policy banning ads that promote “financial products and services that are associated with misleading or deceptive promotional practices”. The list includes ads of cryptocurrencies, Initial Coin Offerings and binary options.
Why is this advertising policy change?
They announced this in a blog post by Rob Leathern. The post claimed that many companies are using the Facebook platform to advertise shady financial products. The social media wants to make it harder for scammers to profit with their presence on the platform by banning advertisement of such services. They also encourage users to help maintaining the community and report content that violates the new policy.
ICOs don’t have clear regulatory framework. Maybe it is better this way until such regulations are enforced. Facebook aims to make ads safe for the people and want to protect their massive user base from scams. The changes may seem radical but are well needed for now and as they said are not permanent.
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams and deception. That said there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”
For now it is not clear will other social media sites follow Facebook and change their advertisement guidelines. As a lot of people know you should never put more into ICOs than you can afford to lose. A lot of ads promise returns without stating the risks.
Advertisers are required to target only people that are 18 years old or more.The company’s guidelines include few examples of ban-worthy ads. Some include “Use your retirement funds to buy Bitcoin!” and “buy now and get coins for 15% off”. Other ban-worthy ads are deceptive and misleading student loan ads.
Facebook allows ads for sensitive financial topics. It requires “written permission” for any real-money gambling or gaming services. It is not clear what presence did the cryptocurrency had on the network before the change.
“This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve.” – Facebook
Experts in the cryptocurrency industry are warning people about a serious topic. There are participants who capitalize on the limited jurisdictional reach of the regulators by issuing fake promisses.
This was not the first policy change
Recently the CEO of Facebook – Mark Zuckerberg announced that they are going to change their advertising policy. By changing the algorithm that Facebook uses to control what you see in your news feed. And thus decreasing the volume of ads you see in your news feed and more posts from your friends and family. The goal is to create a meaningful active interaction and less passive experience. You can read more about it in this article.
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