The Federal Trade Commission (FTC) is taking legal action against Click Profit, an e-commerce automation company, alleging it deceived consumers out of millions through a fraudulent “passive income” scheme.
The company, along with its co-founders Craig Emslie and Patrick McGeoghean, promised high returns by managing Amazon storefronts on behalf of investors, according to a CNBC report.
However, the FTC claims these promises were false, and most customers lost their investments, often falling into deep debt.
FTC’s crackdown on deceptive e-commerce schemes
According to the lawsuit filed in the US District Court for the Southern District of Florida, Click Profit—operating under names such as FBALaunch, Automation Industries, and PortfolioLaunch—charged consumers between $45,000 and $75,000 upfront, plus additional inventory costs exceeding $10,000.
The company claimed to offer a secure, wealth-generating opportunity, using AI-driven strategies and partnerships with major brands like Nike, Disney, and Marvel.
The FTC, however, asserts that these brand affiliations never existed and that the promised AI technology was fabricated.
The company allegedly used deceptive marketing tactics, with Emslie appearing in TikTok ads boasting about guaranteed profits, even falsely implying investors’ stores could be acquired by venture capital firms at significant multiples.
Click Profit also showcased screenshots of Amazon storefronts claiming to generate over $540,000 in monthly sales, a claim the FTC describes as misleading.
Investors left in financial ruin
Instead of earning passive income, many investors faced financial ruin.
The FTC revealed that Amazon suspended or shut down 95% of Click Profit’s storefronts due to policy violations.
Over one-fifth of its stores earned no money, while another third generated less than $2,500 in lifetime sales.
Consumers unable to recover their investments found themselves burdened with credit card debt and unsold inventory.
One victim, who invested his life savings, was reportedly threatened with a lawsuit when he posted a negative review about Click Profit.
The FTC claims the company frequently refused refunds and used legal threats to silence dissatisfied customers.
The FTC has accused Click Profit of violating the FTC Act, the Consumer Review Fairness Act, and the Business Opportunity Rule.
The agency is seeking a permanent ban on the company’s operations and financial restitution for affected investors.
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