BBB refers prediction market Kalshi to state regulators over ad inquiry

The BBB National Programs' National Advertising Division (NAD) referred the prediction market platform Kalshi to state regulators on March 18, 2024, following Kalshi's refusal to cooperate with an inquiry into its influencer advertising practices. The NAD had requested information from Kalshi regarding disclosures made by influencers promoting the platform, specifically concerning whether these influencers adequately revealed their material connections to the company. Kalshi did not respond to the NAD's requests for substantiation, leading the division to conclude that the company was not willing to voluntarily comply with its advertising review process. As a result, the NAD recommended that relevant state attorneys general and the Federal Trade Commission (FTC) review Kalshi's practices. The NAD's referral highlights concerns about transparency in influencer marketing, particularly for financial products and services like prediction markets, where clear disclosure is crucial for consumer protection. The investigation was initiated after the NAD identified potential issues with Kalshi's influencer campaigns.