Cutting Through the Hype

Abstract

This chapter addresses the emerging challenges of consumer protection in the context of non-fungible tokens (NFTs). Although NFTs are generally excluded from financial regulation under instruments such as the Markets in Crypto-Assets Regulation (MiCAR), they are increasingly marketed and sold to consumers as speculative digital assets. Many of these transactions rely on techniques that obscure key information, such as price, scarcity, or value, or employ design strategies that steer user behaviour. The chapter examines how the Unfair Commercial Practices Directive (UCPD) can apply to such cases, with a focus on misleading actions and omissions, aggressive practices, and interface-driven manipulation. While NFTs are not expressly recognized as consumer products, they fall within the material scope of EU consumer law when offered in a business-to-consumer setting. The analysis reveals that the UCPD remains a relevant, albeit under-enforced, tool for addressing deceptive and exploitative practices in NFT markets. However, enforcement is hindered by the novelty of the technology and the opacity of many digital marketplaces. The chapter calls for more precise regulatory guidance, greater awareness among enforcement authorities, and renewed attention to the structural risks posed by token-based commerce.