Click Profit, a company that promised investors the opportunity to earn tens of thousands of dollars in passive income by building e-commerce stores on Amazon, Walmart, and TikTok, is now facing a lawsuit from the Federal Trade Commission (FTC). The FTC alleges that consumers collectively lost at least $14 million by participating in Click Profit’s investment opportunity. The company, owned by Craig Emslie and Patrick McGeoghean, required clients to pay between $45,000 and $75,000 initially as a management fee, and an additional $10,000 for inventory.
The FTC filed a lawsuit against Click Profit, accusing the company of falsely promising customers $150,000 in guaranteed sales by using AI technology to help them sell brand-name products. Click Profit claimed it would handle all logistics, product selection, shipping, and customer service, with investors receiving a cut of the profits. However, many investors found that the promised money never materialized, leading the FTC to request a federal court to stop Click Profit from operating.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that Click Profit misled consumers by falsely promising guaranteed passive income through AI technology and exclusive brand partnerships. The deception caused individual consumers to lose tens of thousands of dollars while enriching Click Profit’s operators.
This case is part of the FTC’s efforts to combat companies that claim to launch and manage online businesses for clients in exchange for a substantial investment. Click Profit is not the first company to face legal action from the FTC for such claims, with Ascend Ecom and Empire being sued in previous years.
Click Profit operated under different names like Automation Industries and PortfolioLaunch since at least 2021. The company marketed its scheme as a passive income generator powered by AI, claiming that profits would outperform traditional investments like stocks and real estate. Click Profit built credibility by falsely claiming partnerships with companies like Disney, Colgate, and Nike, enabling them to purchase merchandise at a discounted price. However, the FTC found that Click Profit had no affiliation with these companies and sold generic and off-brand goods on its e-commerce storefronts.
Advertisements by Click Profit also touted a $5 million supercomputer that used AI to find profitable products. The FTC’s complaint revealed that the AI technology and brand partnerships did not exist, and the promised earnings never materialized. Amazon suspended or blocked 95% of Click Profit’s stores for violating seller policies, with many stores earning little to no money after accounting for fees.
The FTC is seeking monetary relief for Click Profit’s clients and a permanent ban on the company from doing business. This case serves as a reminder to consumers to be cautious of investment opportunities that promise guaranteed returns and to conduct thorough research before investing in any business venture.
