Online Trading Academy

Agency: Federal Trade Commission (FTC)Washington
Description:

On February 12, 2020 the Federal Trade Commission (FTC) filed a complaint against Online Trading Academy (OTA Franchise Corporation) and its operators alleging the company deceived customers in an investment training scheme. OTA collected more than $370 million from consumers nationwide who paid upwards of $50,000 for OTA’s training program.

The complaint alleges OTA misrepresents that it has a patented strategy that anyone can use to generate substantial income from trading in the financial markets. OTA claims that its strategy is designed to generate income in any market. The company’s claims are often targeted at older consumers.  Additionally, OTA instructors are commissioned salespeople who market OTA’s training and strategy to consumers in live events across the county. They often hold themselves out as successful traders who have amassed substantial wealth using OTA’s strategy. Evidence obtained by the FTC also indicates that instructors’ claims of amassing wealth by using OTA’s strategy are false or unsubstantiated.

OTA does not track the trading results of its customers, and the FTC alleges that OTA’s own surveys indicate that its customers are not making the type of income OTA advertises. The vast majority of OTA’s customers do not make any money, and many lose money on top of the money they pay OTA.

Details of the complaint are available on the FTC website.

On September 11, 2020, Online Trading Academy reached a settlement with the Federal Trade Commission to address a complaint filed in February 2020 alleging the business deceived consumers in a business investment scheme. Under the settlement the company is required to offer debt forgiveness to thousands of consumers who purchased its “training programs”. The company’s founder and other individuals will together pay between $5 and $9.1 million and turn over assets under the terms of the settlement.

In addition, OTC is prohibited from making claims about potential earnings unless the claims are truthful and there is written documentation to support them. They are also prohibited from making claims without adequate support about how quickly consumers can become proficient in the defendants’ trading “strategy” or the amount of time or money needed to generate significant income.

The settlement also prohibits OTC from calling their salespeople “education counselors,” and from misrepresenting that instructors are active or successful traders. OTC also are prohibited from using contracts that prevent their customers from interacting with law enforcement or posting reviews about the defendants online and requires that they notify consumers of their right to post honest reviews and file complaints.

Details of the case and settlement are available on the FTC website.