Business ProfileforOTA Franchise Corporation

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On September 11, 2020, OTA Franchise Corporation entered into a Stipulated Order with the Federal Trade Commission. The Stipulated Order settles allegations that the business made unfair or deceptive acts or practices affecting commerce and misrepresenting material facts, which constitute deceptive acts or practices. The business allegedly made false or unsubstantiated earnings claims, leading consumers to believe they could amass wealth by using the business' strategy. The business allegedly required consumers who requested refunds to sign contracts barring them from posting negative comments about the business and from reporting wrongdoings to law enforcement agencies. Under terms of the Stipulated Order, the business is prohibited from making claims about potential earnings unless the claims are truthful and there is written documentation to support the claims. The business is prohibited from calling their salespeople “education counselors,” and from misrepresenting that instructors are active or successful traders. The business is prohibited from using contracts that prevent their customers from interacting with law enforcement or posting reviews about the defendants online. The Stipulated Order also includes a judgment of $362 million, which is partially suspended due to the inability to pay. Additionally, the Stipulated Order will require Newport Exchange Holdings Inc to offer debt forgiveness to consumers who have debt owed to Newport Exchange Holdings Inc for its training.

This action is final.