“I’ll show you how to make $24,840 or more every week. Quick and easy… trading requires zero market knowledge or trading experience.” A look at the weekly pay stubs explains why people are interested in Florida-based WealthPress’s promise that a subscription to one of the company’s services will give them access to a “system” for making big money trading financial markets. . But WealthPress had a hard time substantiating its profit claims, according to the FTC. The proposed settlement shows the FTC is applying its own “pressure” — en banc pressure — against violations of the Restoring Online Shopper Confidence Act (ROSCA) and deceptive moneymaking claims.Proposed settlement with WealthPress includes first civil lawsuit Penalties for ROSCA Violationsd Filing a claim for deceptive income after receipt of income in violation of Section 5(m)(1)(B) of the FTC Act Penalty Notice Regarding Money-Making Opportunities.
The defendants—WealthPress Holdings, LLC, InvestPub LLC, Roger Scott, and Conor Lynch—market their services, often in YouTube videos and other websites, targeting people looking for stock content. The film often features a so-called “expert,” sometimes the defendant Scott, claiming to have a “system” that can reliably identify profitable opportunities in stock and options trading—the defendant allegedly passing on the money-making advice To subscribers who paid hundreds or thousands of dollars. US dollar information.
Let’s be clear. The defendants did not merely provide general information about the stock market. According to the complaint, they claimed to have the scoop on algorithms for specific trades that could generate thousands of dollars in profits in just a few days. Promotional literature claims to review the experiences of satisfied customers and features boats and frigates. Defendant Scott claimed he made so much money from the system’s dealings that he took vacations on chartered private jets and lived in a Beverly Hills house with A-list neighbors. Another defendant’s “expert” said people could “easily receive $7,000 the next day” putting them “on the path to becoming a millionaire, no matter where you start today.” But are stock trading risky? The complaint cites a video in which phrases such as “low risk” and “extremely high reward” were used. The FTC said the ad further suggested that each transaction would generate a profit of at least 300%.
That’s the picture the defendants painted for their clients, but according to the FTC, “In fact, in many cases, the so-called experts did not generate substantial income from trading the financial markets, nor did they sustain themselves through trading profits. lifestyle.” How exactly do they make money?Through “depending on[ing] Revenue from sales of trade referral services to consumers. ” In fact, according to the indictment, the defendants admitted that they had no evidence that clients might earn profits or revenue from advertising, but hid this critical information in so-called disclaimers on their websites.
What’s more, the FTC said the defendants did not conduct many of the trades they touted: “In fact, in many cases, the trades were entirely fictitious and amounted to nothing more than calculations based on historical price data.” But customers did Deals recommended by defendants often find themselves in ruins financially, leaving them in deeper trouble than when they started. According to the complaint, this outcome was so common that when people contacted WealthPress to express frustration about their losses, the defendants had prepared a canned email response that began with: “We are sorry to learn about your trade.” The experience was not ideal.” A good start. “
The complaint alleges that the defendants violated the FTC Act through false or unsubstantiated income claims and multiple misrepresentations about their purported algorithms and other services. In addition, the FTC said they obtained consumers’ billing information without clearly disclosing all material terms of the transaction or obtained the consumer’s express informed consent before charging a credit card, debit card or bank account. Online negative options violate ROSCA regulations.
For businesses that have been following FTC regulations Announcement of Penalty Notice for Violationsyou need to pay particular attention to the complaint alleging that the defendant in this case received Penalty Notice Regarding Money-Making Opportunities but continued to file false, misleading or deceptive income claims – conduct that subject them to civil penalties.
To settle the case, defendants WealthPress, Scott and Lynch will hand over more than $1.2 million, which the FTC will use to provide refunds to injured consumers. In addition, WealthPress will pay a $500,000 civil penalty. Defendants will also be required to contact their customers directly regarding the FTC lawsuit and will be barred from making future revenue claims without written evidence to support their statements.
The proposed settlement offers some important lessons for other companies and would-be entrepreneurs.
Remember threads. this Restoring Online Shopper Confidence Act Prohibit online negative selection unless the seller: 1) clearly discloses all material terms of the transaction before obtaining the consumer’s billing information; 2) obtains the consumer’s express informed consent before charging; 3) provides a way to stop double charging simple mechanism. Now is a good time to review ROSCA to ensure your practice is not subject to civil penalties.
Receiving a notice of a penalty violation increases the stakes for future violations. If your company is one of more than 1,100 companies recognized for this award Penalty Notice Regarding Money-Making Opportunitiesthis case is an example Making certain misleading statements may trigger financial penalties Once you have “actual knowledge” that these practices violate the law.
Future Entrepreneurs: No one can guarantee a return on stocks, options, commodities, cryptocurrencies, real estate or other investments. If someone promises guaranteed returns, it’s probably a scam. Too often, those stories of a “no more work” leisure life are false.The Federal Trade Commission has resource Helps you differentiate between hype and hope when evaluating investment pitches.