On December 2, 2024, during Cyber Monday, one of the busiest days at an Amazon fulfillment center in Orlando, Florida, packages were seen riding on a conveyor belt. This image captures the hustle and bustle of e-commerce during peak shopping seasons, where online retailers like Amazon work tirelessly to fulfill orders and deliver packages to customers across the globe.
The Federal Trade Commission (FTC) recently made headlines by going after an e-commerce company that allegedly ran a “passive income” scheme, promising consumers high returns by setting up Amazon storefronts on their behalf. The company in question, Click Profit, along with its co-founders Craig Emslie and Patrick McGeoghean, and two other associates, are facing a lawsuit filed by the FTC. The lawsuit aims to temporarily bar the parties from conducting business and seeks to hold them accountable for their actions.
This case is just one example of the FTC cracking down on e-commerce “automation” services that make bold claims about generating passive income through online storefronts. These companies often lure consumers with promises of substantial earnings and the use of advanced technologies like artificial intelligence. However, many consumers end up losing money instead of making the promised profits.
Click Profit, operating under various names like FBALaunch, Automation Industries, and PortfolioLaunch, targeted investors with the promise of building highly profitable e-commerce stores on platforms like Amazon, Walmart, and TikTok. The company charged consumers hefty fees ranging from $45,000 to $75,000 for initial investments, in addition to requiring more money for inventory. Click Profit also took a significant cut of up to 35% from any profits generated by their clients’ stores.
The company’s marketing materials boasted about the safety and profitability of the business opportunity, showcasing screenshots of successful Amazon storefronts and making extravagant claims about potential earnings. Craig Emslie, one of the co-founders, appeared in promotional videos on platforms like TikTok, where he compared the investment in Click Profit to traditional investment options like the stock market, real estate, or precious metals.
Click Profit further embellished its credibility by claiming partnerships with well-known brands like Nike, Disney, Dell, Colgate, and Marvel. The company also alleged to have invested millions in AI technology to identify profitable products and generate substantial sales. However, the FTC revealed that these claims were false, and the promised earnings never materialized for consumers.
Amazon took action against Click Profit by suspending or terminating 95% of their stores due to policy violations. Many of Click Profit’s stores failed to generate any significant sales, leaving consumers with unsold products and mounting credit card debt. Some consumers, like one mentioned in the lawsuit, invested their life savings in Click Profit only to be left with nothing to show for it. When this consumer posted a negative review online, he was threatened with legal action by Emslie’s attorney.
The FTC’s lawsuit against Click Profit alleges violations of the FTC Act, the Consumer Review Fairness Act, and the Business Opportunity Rule. The FTC seeks to permanently prohibit Click Profit from conducting business and provide monetary relief to the victims who suffered financial losses due to the scheme.
In conclusion, the case of Click Profit serves as a cautionary tale about the risks associated with e-commerce schemes that promise easy money and passive income. Consumers should exercise caution and due diligence when considering investment opportunities, especially those that make extravagant claims and offer unrealistic returns. The FTC’s actions against Click Profit underscore the importance of consumer protection and holding fraudulent businesses accountable for their deceptive practices.
