On 8 June 2026, BBB National Programs' National Advertising Division (NAD) referred Kalshi Inc. to appropriate regulatory authorities, including relevant state attorneys general, after Kalshi declined to participate in an NAD self-regulatory inquiry. The proceeding arose through NAD's marketplace monitoring programme and is at the enforcement referral stage: NAD has no authority to compel compliance, and under NAD and NARB procedures, a company's failure to engage triggers automatic referral to authorities with jurisdiction over the advertising conduct at issue.
The NAD inquiry examined whether Kalshi's social media influencer and affiliate advertising satisfied the disclosure requirements set out in the Federal Trade Commission's Guides Concerning the Use of Endorsements and Testimonials in Advertising, 16 C.F.R. Part 255. The FTC Guides require that material connections between advertisers and endorsers or affiliates be disclosed clearly and conspicuously in advertising content. NAD also examined whether Kalshi maintained adequate policies and monitoring procedures to ensure its influencer and affiliate network met those disclosure obligations.
Prediction-market platforms using influencer or affiliate marketing programmes face exposure to FTC enforcement, state consumer protection actions, and platform-level sanctions under NAD's reporting relationships with social media platforms. Kalshi's non-participation means the NAD case file, including the advertising content that triggered the inquiry, will be reported to the platforms where the advertising appeared. State attorneys general receiving the NAD referral may open independent investigations into the adequacy of Kalshi's disclosure practices.
NAD did not publish findings on the merits of whether Kalshi's disclosures were adequate, as non-participation ended the inquiry before substantive review. The referral is not a finding of liability; regulatory authorities may investigate, decline to act, or request further information. Kalshi remains subject to FTC and state-level oversight of its advertising practices independent of this referral, and social media platforms that received NAD's report may take independent action under their own advertising policies.
Licentium advises prediction-market operators and digital asset platforms on regulatory compliance across advertising, financial services, and consumer protection regimes. Operators seeking to assess their influencer marketing programmes against FTC and NAD requirements, or to prepare for potential regulatory inquiries, are welcome to reach out. Work we undertake includes FTC endorsement guide compliance, prediction market regulatory advisory, advertising law review, state regulatory engagement, and financial services marketing compliance.
Source: BBB National Programs, National Advertising Division, Referral Decision: Kalshi Inc., 8 June 2026