The Federal Trade Commission (FTC) stopped Warrior Trading and its CEO, Ross Cameron, from making false earnings claims regarding their day-trading strategies. The Commission ordered them to pay $3 million to harmed consumers.
Day-trading involves the rapid buying and selling of stocks within the day to take advantage of short-term price changes to make a profit. In most cases, day-traders buy and sell stocks using borrowed money or leveraged capital, hoping that they will make huge profits. However, they are also facing the risk of suffering big losses. Thus, it is extremely risky.
In a lawsuit, the FTC alleged that Warrior Trading and Cameron are using deceptive sales practices to convince consumers to spend hundreds and even thousands of dollars to buy their day-trading strategies, related courses, programs, workshops, and tools.
In their advertisements and promotional materials, the defendants claimed that their day-trading strategies are effective, proven, scalable, and profitable with an initial investment of $500. The defendants also claimed that consumers will be able to learn and execute the investment strategies consistently and profitably if they purchase and enroll in Warrior Trading’s courses, workshops, and programs.
In an advertisement on Facebook in September 2020, Warrior Trading posted, “Learn my strategies for finding the right stocks and managing risk that I used to grow $583 to over $1,000,000!”
“Defendants deceptively promote their day-trading strategies to people with
limited resources and limited trading experience. The Warrior Trading YouTube channel also has a video series titled “My NEW Small Account Challenge” where Cameron “starts over” and states he parlayed $500 he made as an Uber driver into “$53k in 17 days,” according to the consumer protection watchdog in the complaint.
The FTC argued that the defendants’ claims are false, misleading, and unsubstantiated. Many consumers were led to believe that purchasing Warrior Trading programs will make them profitable but in fact, lost thousands of dollars.
The defendants violated the FTC Act and the Telemarketing Sales Rule (TSR) by engaging in deceptive, misleading, and unlawful advertising and selling of day-trading strategies and related services to consumers in the United States.
Warrior Trading and Cameron settled with the FTC and agreed to pay $3 million to consumers harmed by their false earnings claims and bogus opportunities.
The FTC prohibited the defendants from making unsupported earning claims and misrepresenting that their products/programs can be profitable regardless of a person’s educational background and capital.
The consumer protection watchdog also prohibited Warrior Trading and Cameron from further violating the TSR.
In a statement, FTC Bureau of Consumer Protection Director Samuel Levine said, “Warrior Trading is paying a heavy price for misleading consumers with bogus money-making claims.”
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