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Beware of “Trainings” That Promise to Make You Money in Any Market

 

  • The FTC sued an online investment training company OTA Franchise Corporation and related companies and individuals (collectively “OTA”) alleging that OTA ran a scheme which used false or unfounded earnings claims to sell investment training programs in violation of the FTC Act and the Consumer Review Fairness Act.
  • The complaint alleges that, among other things, OTA falsely claimed that it had a patented strategy to generate income by trading on the financial markets regardless of market conditions, that its sales people falsely held themselves out to be successful traders, that OTA targeted older consumers, charging them as much as $50,000 for its programs, and that OTA required consumers to sign non-disparagement agreements as a condition for issuing refunds. The complaint also alleges that OTA’s scheme has collected more than $370 million from consumers.
  • The complaint seeks injunctive relief, rescission or reformation of contracts, restitution, refund of monies paid, disgorgement, and the costs of bringing the action.