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The FTC sued Amazon Automation Company, which allegedly deceives tens of millions of dollars in customers in connection with the “passive income” scheme. In exchange for a prepaid investment, click on the profits offered to open and manage an online storefront for customers, but the FTC claims that the company failed to deliver and placed the consumer in debt. The company has promised a better return than the stock market, and the co-founder appeared in Tiktok’s video on Warren Buffett and Wads of Cash along with images of “Warren Buffett” and “Fanning himself” according to the FTC.
The Federal Trade Commission is chasing an e-commerce company that allegedly received millions of dollars from consumers as part of a “passive income” scheme.
The FTC said Tuesday it filed a lawsuit against a company called Click Profit. co-founders Craig Msley and Patrick McJogen. and two other business associates. He also asked the judge to prohibit parties from doing business temporarily.
This case is the latest example of FTC cracking down on e-commerce “automation” services. These companies launch and manage online storefronts on behalf of their clients. Clients pay the promise to pay for the service and make tens of thousands of dollars on “passive income.” Companies often make luxurious claims about the use of artificial intelligence technologies to ensure potential revenues and profits. Despite their guarantees, consumers often end up losing money.
According to the FTC, it operates under the names Fbalaunch, Automation Industries and Portfoliolaunch by selling products on Amazon, Walmart and Tiktok.[利益]has pledged investors to “build a profitable e-commerce store from scratch.”
The company claimed that the FTC filed in the US District Court for the Southern District of Florida, and charged consumers with $45,000 to $75,000 for initial investments, plus more than $10,000 for inventory payments. Click up to 35% of the profit from a customer’s store[利益]Click, the complaint states.
According to marketing materials mentioned in the FTC complaint, the company argued that the business opportunities are “proven to be safe, secure and wealth-generating.” I posted a screenshot that was said to have been a successful Amazon store. This claimed that more than $540,000 in product sales were generated in a month.
Emslie frequently appeared in Tiktok videos and other online ads, pitching future consumers. According to the FTC complaint, one ad said, “We will never offer stock markets, real estate or precious metals to you.” Other Tiktok videos show him appearing along with the image of Warren Buffett, “incites himself” with a cash wad according to the complaints.
Click Profit spoke about its expertise, claiming it has product sourcing partnerships with legitimate brands such as Nike, Disney, Dell, Colgate and Marvel. It also claims that the supercomputers have generated “about $100 million in sales” by spending $5 million to build “supercomputers” and other AI technologies to find “the most profitable products.”
The company allegedly implies that investors’ online stores could be acquired by venture capital companies associated with “Click Profit” at “3-6 times multiples.”
“In reality, there are no highly-advertised AI technology and brand partnerships, and the promised revenue never comes to fruition,” the FTC said in a complaint.
Amazon has suspended or terminated approximately 95% of Click Profit stores after violating Amazon’s seller policy. After taking into account Amazon’s fees, more than a fifth of Click Profit stores on the platform made no money, while another third earned less than $2,500 in total lifetime sales, the FTC said.
As a result, most consumers were unable to recover their investment, and “some consumers are ‘plagued by burdensome credit card debt and unsold products,” according to the FTC, and Click Profit often refused to refund their investments and threatened them with legal action if they posted publicly about their experience.
One of the unnamed consumers mentioned in the lawsuit invested “saving his life” in the profits of Clicks and later as a client “shows nothing for his payment,” the complaint states. He has posted negative reviews online and is said to have been approached by M3’s lawyers.
According to the FTC, consumers dropped the review and asked M3 if they could get a partial refund.
“The lawyer told consumers that M3 responded ‘f*** off’,” the FTC alleged.
Representatives from Emslie and Click Profit did not immediately respond to requests for comment.
The FTC alleges that Click Profit violated the FTC Act, the Consumer Review Fairness Act, and the Business Opportunity Rules. You are trying to permanently ban Click Profit from doing business.
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