The ASA ruled that the claim “learn how to make £3.5 million over the next 15 years” was misleading, exaggerated and unsubstantiated.
After ruling that an FxPro UK TV advertisement breached the Social Responsibility rules, the UK Advertising Standards Authority (ASA) has set its sights again on Forex advertising, this time – on a juicy advertisement for a Forex seminar.
Today, the ASA said it upheld a complaint against Learn to Trade Ltd, ruling that the claims in one of its ads for a Forex seminar were misleading, unsubstantiated and exaggerated.
The ad in question represents a Facebook post for Learn to Trade Ltd, seen on November 22, 2016. The ad stated “Discover how to get your share of the largest and most liquid market in the World. Join us for an educational FREE Forex Seminar Limited seats- Book Now! Learn the Secrets of Successful Professional Trading. Learn the power of compounding or how to make £3.5 million over the next 15 years…”.
The complainant questioned the claim “learn how to make £3.5 million over the next 15 years”.
Learn to Trade Ltd responded that 25% of their clients had a starting balance of at least £20,000 in their trading account and they taught their clients to risk only 2% of their account size on any single trade. The company explained that when starting with a £20,000 trading account, they assumed a 3% growth per month and that this would end the 15 years on £4,090,067. Learn to Trade Ltd added that they only advertised £3.5 million on the basis that not all trades were taken and to allow for a 15% margin of error.
The ASA upheld the complaint as it considered that consumers would understand the claim “learn how to make £3.5 million over the next 15 years” to mean that the advice and guidance on investment learned at the seminar would enable them to achieve very large sums of money, such as £3.5 million, over a long timescale like 15 years, by trading on the Forex market.
The ASA noted that the advertiser omitted the information about the starting balance of £20,000 and the assumed monthly growth rate of 3%. The body also took into account the lack of evidence to show that Learn to Trade Ltd’s teaching methods were proven or successful and had achieved sums such as £3.5 million over 15 years.
The ASA has ruled that the ad must not appear in its current form. Learn to Trade Ltd was told not to repeat the claim “learn how to make £3.5 million over the next 15 years” unless having serious evidence to show that their teaching methods were proven.