UK’s regulator, the Financial Conduct Authority, is presently working towards finding ways to regulate adverts on Facebook, Twitter and other social media. The regulator has recently launched a public consultation with an aim to figure out whether stricter rules are required to be applied in order to make advertising through social media clearer.
The FCA has been quoted saying in a statement, “Digital and, in particular, social media are now becoming the media of choice in many cases for customer communications and specifically for financial promotions. We see positive benefits from using social media but this has to be based on compliance. A number of these media, however, have character limitations which can constrain their use.”
There are several companies that have already raised issues about the challenges of advertising on Twitter due to its 140 character limit, but it recommended the use of the hashtag #ad to avoid misleading users.
The FCA further said that “We are aware that in some circumstances firms may want to use certain media but perceive difficulties in complying with some of our rules, particularly with our financial promotion rules.”
The consultation is scheduled to remain open until November 2014, and the regulator is expected to execute the final rules by the end of 2015.