Close Friends Traders - Close Friends Traders

Recommendation: Upheld | Medium: Government Body

The ASCI had approached the advertiser (Close Friend Traders) and the concerned media (Bennett Coleman & Company Ltd) which carried the advertisement in Navbharat Times, for their response in addressing the grievances of the complainant and forwarded the details of the complaint, verbatim, to the advertiser / media with a request to respond to the same. The advertiser / media was offered an option to seek an Informal Resolution (IR) of the complaint by modifying or withdrawing the advertisement or alternately to substantiate the claims with supporting data. The advertiser / media was also offered an opportunity for a telecon with the ASCI Secretariat, which they did not avail and neither did they submit their written response. The Consumer Complaints Council (CCC) viewed the print advertisement and considered the complaint. The CCC observed that no response was received from the advertiser / concerned media prior to the prescribed due date as specified by the ASCI Secretariat. The CCC observed that the advertisement promotes services associated with Dabba trading - a form of unregulated and illegal securities trading. The advertisement implies that trading can be done easily without any government checks or official registration. The CCC further observed that the advertisement encourages participation in an activity that is prohibited under the Securities Contracts (Regulation) Act, 1956. The promotion of such services constitutes the advertisement of an illegal product or service. Moreover, by omitting any disclosure about the illegality or the risks involved, the advertisement creates a misleading impression, especially for first time investors. It exploits consumers’ lack of knowledge by presenting unlawful trading as a legitimate and attractive financial option. Claim - “भारत का नंबर 1 ट्रेसर्ंग PLATFORM TRADEDOST” - the advertiser has not provided credible third-party data demonstrating that TradeDost leads the Indian market among other trading platforms. There was no verifiable comparative data provided of the advertiser’s trading platform versus other similar trading platforms in India, to prove that their trading platform is in leadership position (No.1). Claim - “भारत का िबिेज्यादा मासजफन देनेवाला PLATFORM” - the advertiser has not provided verifiable comparative evidence showing that their platform offers the highest margin in India compared to all other trading platforms. Claim - “Zero Brokerage” - implies that there are no trading costs whatsoever. The advertiser has not provided supporting evidence confirming the absence of brokerage fees across all relevant trades. Additionally, there are no prominent disclaimers detailing any applicable fees, charges, or conditions, leading to a lack of transparency. In the absence of response from the advertiser, the CCC concluded that the said claims were not substantiated. The claims are misleading by exaggeration and are likely to lead to widespread disappointment in the minds of consumers. The advertisement contravened Chapter I, Clauses 1.1, 1.4 and 1.5, and Chapter III, Clause 3.4 of the ASCI Code. This complaint was UPHELD.