Passive Income Amazon AI Scheme Allegedly Scammed Customers Out of at Least $14 Million, According to the FTC
- The Federal Trade Commission filed a lawsuit against Click Profit and its owners on Tuesday, alleging that the company defrauded customers of at least $14 million.
- Click Profit claimed to set up online storefronts for customers and handle all the logistics in exchange for at least $55,000.
Click Profit promised investors that it would build e-commerce stores on Amazon, Walmart, and TikTok and help them earn tens of thousands of dollars in passive income. All the client had to do was pay between $45,000 and $75,000 initially as a management fee, and then $10,000 more for inventory.
Now the Federal Trade Commission (FTC) is suing the company, alleging that consumers collectively lost at least $14 million by participating in the so-called investment opportunity.
On Tuesday, the FTC filed a lawsuit against Click Profit and its owners, Craig Emslie and Patrick McGeoghean, alleging that the company promised customers $150,000 in “guaranteed” sales by helping them sell brand-name products selected by its AI supercomputer. Click Profit said it would also handle all the logistics, product selection, shipping, and customer service. Investors would make money if products were sold, but Click Profit would receive a 25% to 35% cut.
However, the majority of investors found that the promised money never materialized. The agency requested that a federal court stop Click Profit from operating, and the request was granted earlier this month.
“Click Profit misled consumers by falsely promising them guaranteed passive income using cutting-edge AI technology and exclusive brand partnerships,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, in a statement. “Their deception caused individual consumers to lose tens of thousands of dollars while the Click Profit’s operators enriched themselves.”
