Maybe you’ve already heard about Operation Income Illusion. It’s the FTC’s latest action, and it started earlier this month — just in time for Christmas.
The FTC filed lawsuits against five different companies. Among these is Raging Bull, a big and successful player in the financial publishing space.
Raging Bull got a restraining order prohibiting it from doing any more marketing… and it had its assets frozen.
So what exactly did Raging Bull to draw the eye of the FTC? From the FTC site:
“The defendants claimed in their pitches that consumers don’t need a lot of time, money, or experience, and that the global coronavirus pandemic represents a great time to pay hundreds or thousands of dollars to learn their secret trading techniques, claiming in one ad that the pandemic ‘…might be the most exciting opportunity in decades!’ The defendants also made claims like ‘Learn how you could DOUBLE or TRIPLE your account in One Week!'”
Errr…
That sounds a lot like the VSL I just finished writing for a real estate investing opportunity. So I find this whole Income Illusion thing a bit chilling.
Because from what I’ve seen in the past, when the FTC goes after a direct marketing company, that company is probably doing something really shady.
But the FTC took issue with Raging Bull over pretty standard direct marketing practices. Making big claims… using the most flattering testimonials… appealing to people’s greed and sloth.
I have no idea where this will go in the future. Maybe the lawsuit will be dismissed… maybe it won’t, but Raging Bull will somehow beat it… maybe it will be a one-time action by the FTC to set an example, without broader consequences. Or maybe it’s a sign of things to come.
In any case, it’s something to keep an eye on.
Now here’s an unrelated pitch, also in time for Christmas:
I’m launching a weekly email newsletter about travel during corona (“…the most exciting opportunity in decades!'”). The first issue will go out tomorrow, right on Christmas Day. If you’re interested, you can sign up at the link below: