Summary of Action

TINA.org investigated Stansberry & Associates Investment Research, LLC and found that it was using hundreds of deceptive testimonials in order to sell its investment newsletters. Specifically, TINA.org found that many of Stansberry’s testimonials did not appear to report results that are typical or achievable for ordinary subscribers, many omitted vital information (such as the rate of return on investment and when the claimed successes occurred), none of them warned of the substantial risks associated with investing money (nor did the company clearly disclose such risks), and some contained false information. By using such testimonials, Stansberry was not only deceiving consumers, but also violating federal and state laws, as well as a prior court order imposed in 2007 after the SEC sued the company for fraud.

As a result of these findings, TINA.org sent a letter to the company’s founder, Frank Porter Stansberry, on March 11, 2014 alerting him to the issues and requesting that the company remove all deceptive testimonials from its website and promotional materials, as well as clearly disclose on its website the risks associated with investing money. TINA.org requested action within one week and planned on filing complaints with the SEC, FTC, and Maryland Attorney General if the deadline was not met.

After several communications with the company, all of which are posted in the menu, Stansberry & Associates complied with TINA.org’s requests by the deadline of March 18, 2014. The company removed the hundreds of problematic testimonials from its website and marketing materials, and changed the disclaimer on the site to include a warning that investing money involves risk.  In addition, the company’s founder, Porter Stansberry, indicated that he greatly appreciated TINA.org bringing this matter to his attention and providing him the opportunity to improve his business.

TINA.org will continue to monitor the company, its progress, and any future marketing materials that may be issued.

 

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