The Advertising Standards Authority (ASA) has issued a ruling against Finelo, an AI trading training platform, over misleading online adverts.
The ASA published the ruling as part of its investigation into the advertising of AI products across a number of sectors.
The ruling on two paid-for Facebook advertisements under Finelo’s sub-brand Brianna Trades says that the adverts must not be published again in their current format.
The ASA challenged that the Facebook adverts were misleading because they did not make clear the risks involved in investing and that funds invested could go up or down.
The ASA also said the ads took advantage of the inexperience and credulity of consumers by suggesting returns could be made easily for everyone within minimal time and past experience.
The advertising standards body also questioned whether the adverts were misleading about the nature of the service offered by Finelo. This third complaint was also upheld.
Finelo said the two adverts were only live on 2 May and were removed before contact from the ASA. They said the adverts had not been used since and would not be used in the future.
The platform added that at the time the ads appeared Finelo provided educational content and simulated trading through demonstration accounts. Consumers did not trade real funds through their product and Finelo did not hold or manage consumer funds. Finelo did not believe their product was a financial one or that it should be considered under financial rules of the CAP Code.
The ASA has recently been cracking down on advertisements for unregulated investments. It has issued rulings against an unregulated whiskey investment firm over online adverts, unregulated gold investment ads and a trio of unregulated art investment firms.
The ASA is the body responsible for dealing with complaints about advertising which it deems to be irresponsible or misleading. It has the power to order that an ad must not be broadcast or published again in its current format.