FTC alleges Click Profit scammed millions from investors

The Federal Trade Commission (FTC) has filed a lawsuit against Click Profit, an e-commerce company, and its co-founders for allegedly scamming investors out of millions. The company promised consumers a "passive income" through automated Amazon storefronts that would yield returns higher than the stock market. Click Profit, which also went by names like FBALaunch and Automation Industries, charged clients between $45,000 to $75,000, plus additional fees for inventory. The FTC claims the company took up to 35% of profits from customers' stores, despite often leaving them at a loss. The FTC's complaint notes that Click Profit made extravagant promises about its ability to generate wealth, using marketing tactics that included TikTok videos featuring co-founder Craig Emslie. He appeared alongside images of Warren Buffett while showing off large stacks of cash. The complaint further states that Click Profit falsely claimed partnerships with major brands like Nike and Disney to bolster its credibility. However, the FTC asserts that the claimed AI technology and partnerships were nonexistent, and most consumers struggled to recover their investments. According to the FTC, Amazon has suspended or terminated about 95% of Click Profit's stores for policy violations. Many customers saw little to no returns, with some left in significant debt from unsold products. One investor reportedly lost his life savings and faced intimidation after posting negative reviews online. The FTC seeks to permanently shut down Click Profit and provide financial relief to the victims of the alleged scam.