Prosperi Academy Faces ASA Ruling Over Misleading Advertising

The UK Advertising Standards Authority (ASA) recently issued a ruling on a paid YouTube advertisement by Prosperi Academy, which promoted its financial investment training courses. The ad was launched on October 25, 2024.

The ad featured a speaker asking, “How did you become the first millionaire in your family?” The screen then displayed the text “Starting with $20” alongside a screen recording of a bank account balance increasing in real time through trading. The advertisement also included logos of well-known brands and a button labeled “INVEST.”

In another segment, a person described as a “student” claimed to have earned $974 by investing $20. The visuals included charts showing rising trade values and recordings of account balances increasing, accompanied by an excited voiceover in the background.

While the bottom of the screen displayed a disclaimer in small text stating, “Prosperi is a learning platform and does not provide investment or financial advice. Your capital is at risk,” the disclaimers font size was small, partially obscured by other ad elements, and easily overlooked.

ASA Complaints and Ruling

The ASA found that the ad violated several sections of the CAP Code, the self-regulatory guidelines for advertising in the UK. These violations included misleading advertising (3.1), social responsibility (1.3), and financial products rules (14.1 and 14.4). The reasons for the ruling were as follows:

1. Misleading Return Claims

The ASA noted that the return on investment claims in the ad were not clearly marked as fictional and could mislead consumers into believing they were real results. Even if the claims had been marked as fictional, the overall message of the ad implied that taking Prosperi Academys courses could result in quick, high investment returns. Additionally, Prosperi Academy failed to provide any evidence to substantiate the return claims, leading the ASA to rule them as misleading.

2. Insufficient Disclosure of Risks

Although the ad included the disclaimer “Your capital is at risk,” the text was too small and poorly positioned, making it difficult to notice. Furthermore, the ad failed to adequately explain the potential for financial losses or showcase the risks of investment. This omission created the misleading impression that financial investment is low-risk and offers high returns.

3. Irresponsibly Exploiting Consumer Credulity

The ad depicted scenarios of a “student” making significant profits in a short time, suggesting that financial investment is simple and suitable for everyone, regardless of their experience or financial situation. The ad also implied that profits could be achieved within minutes or hours, reinforcing this perception. The ASA concluded that such claims irresponsibly exploited consumers lack of experience and credulity while promoting unrealistic expectations of investment returns.

Corrective Measures for Prosperi Academy

The ASA instructed Zimran Ltd, the operating company behind Prosperi Academy, to implement the following corrective measures:

• Substantiate Investment Claims: Ensure that all investment return claims are adequately supported by evidence.
• Clarify Investment Risks: Clearly state in advertisements that the value of financial investments can decrease, and explicitly warn consumers that their capital is at risk.
• Avoid Irresponsible Advertising: Refrain from suggesting that financial investment is quick, low-risk, or suitable for everyone. Advertisements should not exploit consumers credulity or lack of knowledge.

The ASAs ruling emphasizes the importance of transparent, responsible advertising practices, particularly in financial investment promotions.