On January 13, 2023, the FTC announced that investment advice company WealthPress has agreed to a proposed court order that would require it to refund more than $1.2 million to consumers and pay a $500,000 civil penalty for deceiving consumers with outlandish and false claims about their services. This case mark’s the first time that FTC has collected civil penalties against a company that received the Notice of Penalty Offenses regarding money-making opportunities and the first civil penalties for violations of the Restore Online Shoppers’ Confidence Act. (ROSCA).
Director of the FTC’s Bureau of Consumer Protection Samuel Levine said the following in statement:
“We’ve brought several cases this year against companies making false earnings claims, and we won’t hesitate to bring more. WealthPress is now paying the price for deceiving its customers and ignoring our Notice of Penalty Offenses on money-making claims.”
The FTC alleges that WealthPress and its owners used deceptive claims to sell consumers investment advising services, such as claiming that the services’ recommendations were based on a specific “system” or “strategy” created by a purported expert. According to the complaint, the company charged consumers hundreds or even thousands of dollars for access to these services.
WealthPress and its owners have agreed to a proposed court order that would require them to:
Turn over more than $1.2 million to the FTC for use in providing refunds to consumers harmed by their actions and would pay a $500,000 civil penalty;
Cease making any claim about earnings without the evidence to back those claims up in writing; and
Give notice to consumers about the case, the court order, and what they should know before buying an investment-related service.
Read the FTC’s announcement here.
The complaint can be found here.
