The Better Business Bureau’s National Advertising Division (NAD) said it will refer Kalshi to authorities including attorneys general over undisclosed social media ads.
The NAD announced via press release Monday that it had launched an inquiry into “whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising, and whether Kalshi takes adequate steps to ensure compliance with the Federal Trade Commission’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
It says that Kalshi has failed to participate in this inquiry. As a result, the NAD will now refer the subject to authorities, including relevant state attorneys general, as well as platforms on which ads appear.
The NAD says it offers “independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S.” The organization reviews ads for “truth and accuracy.”
A Kalshi spokesperson told InGame, “We comply with all applicable advertising laws and have since strengthened our communication with influencers on this topic.” Kalshi sees the issue as mostly about historical social media posts, and it maintains it has tightened its approach with influencers after some undisclosed posts.
Kalshi announced new rules last week
In February, Nikita Bier, the head of product at social media site X, accused “global rankings” account Infodex of posting undisclosed Kalshi advertisements.
Kalshi has made frequent use of influencer marketing on social media, with high-profile accounts on platforms like X and Instagram. At times, these social media affiliates have been a source of controversy.
Last week, the prediction market announced new rules for its influencers after Semafor reported that some political influencers were using sponsored posts to promote “election fraud conspiracy theories.” Kalshi instructed the influencers to take down the posts in question.
