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Your odds might be slimmer than they seem.
In a suit filed on June 26, 2026, the National Association of Consumer Advocates, Inc. (NACA), a nonprofit comprised of attorneys and consumer advocates, alleges that Polymarket and its executives engaged in deceptive and unfair marketing practices that led people, especially college students, to use the prediction market.
The complaint claims that Polymarket secretly paid social media influencers to make what seemed to be organic posts about the company and counseled these influencers on how to make the posts go viral. Additionally, it alleges that the influencers used a fake version of the platform to make trades that gave the impression of authentic experiences, and that the company targeted college students on U.S. campuses during on-campus events and collaborations with individual students and student organizations.
In support of these allegations, the complaint references a POLITICO report that found various posts by content creators who did not clearly disclose a paid partnership with the company, as well as a Wall Street Journal investigation into posts that used simulated versions of the platform to place bets.
NACA claims that Polymarket’s actions violate both Washington, D.C.’s Consumer Protection Procedures Act and federal law, including the FTC's Endorsement Guides.
This lawsuit and the growing buzz surrounding these allegations highlight how important transparency is in advertising. If a business influences consumer decisions through endorsements, testimonials, or social media campaigns, it is important to clearly disclose sponsorships and avoid creating misleading impressions about results, risks, or user experiences.
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