Info-Product Red Flags — 14 Things to Check Before You Buy
A concrete checklist for recognising scam trading info products: pricing tricks, fake track records, legal violations, and high-pressure sales.
The Setting
"FX method, 30% monthly returns — ¥49,800" "100% reproducible auto-trading EA — ¥298,000" "Holy-grail indicator from a billionaire trader — ¥39,800" "Complete FX mastery online course — ¥598,000"
The info-product world is built from these inflated numbers and manufactured urgency. If even one of the 14 items below applies, do not buy.
I. Pricing Red Flags
1. "Was ¥298,000 — today only ¥49,800"
The "real" price is ¥49,800. Nobody ever paid ¥298,000. The fake discount is built into the price tag.
2. "Limited to N seats", countdown timers
Refresh the page and the timer often resets, or always shows "3 hours left". Manufactured urgency.
3. ¥300,000+ "high-ticket" courses
When the operator earns hundreds of thousands per sale, their primary product is acquiring more buyers — not making existing buyers successful.
II. Track-Record Red Flags
4. "30%+ monthly returns"
Monthly 30%, compounded, becomes 23× in a year and 6.4 million × in five years. If real, the operator would be the wealthiest person on Earth. The fact that they sell the method is an admission that selling is more profitable than executing.
| Monthly | 1 year | 5 years |
|---|---|---|
| 5% | 1.8× | 19× |
| 10% | 3.1× | 304× |
| 30% | 23× | 6,400,000× |
| 50% | 130× | ~43 billion × |
5. "Win rate 90%" or "100%"
Possible only by refusing to cut losses. A single catastrophic trade erases the apparent edge.
6. Backtest-only results
Backtests can be curve-fit to any past data. Demand forward-test results — at least three years, across multiple regimes (up, down, range).
7. No third-party audit
Personal screenshots, no audited statement, no broker-issued trade history → all fabricable, worthless as evidence.
8. Heavy use of "customer testimonials" with photos
Often paid actors or the seller's friends. Japan's Consumer Affairs Agency has issued formal orders against multiple info-product sellers for fabricated testimonials.
III. Legal & Operational Red Flags
9. Missing Specified Commercial Transactions Act (SCTA) disclosures
Japan's SCTA Art. 11 requires online sellers to disclose:
- Name (and corporate representative, if a company)
- Address
- Phone number
- Return / cancellation terms
"Hidden for privacy" or "contact form only" means the operator is almost certainly violating the law.
10. "This is not investment advice" disclaimers covering specific recommendations
If the substance is paid recommendation of specific securities or trades, it is investment advisory. Unregistered = crime. The disclaimer has no legal force.
→ See Unlicensed Investment Advice Is a Crime
11. Offshore corporate entity
"Singapore Pte Ltd", "Dubai-based", etc. Japanese law still applies when targeting Japan residents — but litigation and recovery become much harder. The offshore claim itself is a warning sign.
IV. Sales-Tactic Red Flags
12. "Free seminar" → high-ticket upsell
The classic funnel:
- Free seminar (90 min)
- Generic, harmless content for the first half
- High-ticket pitch in the second half
- "Today only, first 10 seats" pressure
- Credit card swiped at the venue
- By the time you get home and think, payment already cleared
13. "Earn affiliate commissions by recruiting"
A possible chain-sale (Tokutei Shōtori-hō "renza hanbai torihiki") structure. Strict regulation: written disclosure, 20-day cooling-off, organiser liability. Violations carry criminal penalties.
14. Unsolicited DMs on X / Instagram / LINE
A cold-blast list. The sender knows nothing about you. The pitch is mass-produced.
→ See Social Solicitation Tactics
V. Are Any Info Products Worth Buying?
Almost none. Possible exceptions must satisfy all of:
| Criterion | Detail |
|---|---|
| Reasonable price | Under ¥10,000 — book-equivalent |
| Real-name author with verifiable career | Academic papers, employment history |
| No profitability claims | Does not promise winnings |
| Explains legal framework | Regulation, taxation |
| Explains classics | Dow, Elliott, Wyckoff, etc. |
| Math / statistics textbook | Probability, statistics, econometrics |
In short, a textbook. Anything sold as "the way to make money" is, by default, a scam.
VI. If You Already Bought
Check whether SCTA cooling-off applies, then act fast.
→ See How to Use Cooling-Off → See Legal Recourse After Being Defrauded
Summary Checklist
- Unnatural "X → Y" discount?
- Countdown / scarcity pressure?
- Price over ¥300,000?
- Claims 30%+ monthly returns?
- Claims 90%+ win rate?
- Backtest-only evidence?
- Lacks third-party audit?
- Excess use of customer photos?
- Missing SCTA disclosures?
- Disclaims advice while recommending tickers?
- Operating via offshore entity?
- Free seminar → high-ticket funnel?
- Offers referral commissions?
- Reached you via unsolicited DM?
If even one applies, do not buy.