FTC sues Amazon automation scammers for making false claims and issuing death threats

The world of e-commerce is a vast and ever-evolving landscape, filled with opportunities for both success and deception. One such case that has recently come to light involves an e-commerce “automation” company called Ascend Ecom, which has been accused of defrauding consumers and using deceptive practices to lure in unsuspecting customers.

Jamaal Sanford, a resident of Springfield, Missouri, found himself at the center of this controversy after leaving a negative review for Ascend on the rating site Trustpilot. Little did he know that this simple act would lead to a series of threatening emails and text messages from individuals claiming to be part of a “Russian shadow team.” These messages contained personal information about Sanford and his family, along with ominous warnings to remove the negative review.

Sanford’s experience is just one piece of the puzzle in the Federal Trade Commission’s lawsuit against Ascend, which alleges that the company made false claims about earnings and business performance, and resorted to threatening or penalizing customers for posting honest reviews. The FTC is seeking monetary relief for Ascend customers and aims to permanently prevent the company from conducting business.

This case is part of a broader crackdown by the FTC on e-commerce money-making schemes, particularly those that promise easy passive income through platforms like Amazon and Airbnb. In recent years, the agency has filed lawsuits against multiple automation companies, accusing them of deceptive marketing practices and false promises of generating passive income.

Ascend, like many other e-commerce automation businesses, promoted its services on popular social media platforms like Instagram, TikTok, and YouTube. The company claimed to use proprietary artificial intelligence tools to identify top-selling products and promised customers quick profits on platforms like Amazon and Walmart.

However, as Sanford and many others discovered, these promises often went unfulfilled. Ascend’s dropshipping model, where products are sold to customers without ever stocking inventory, frequently led to stores being suspended on Amazon for policy violations. Customers like Sanford found themselves in debt and with depleted bank accounts, despite the company’s assurances of a buyback guarantee.

In response to the allegations, Ascend’s lawyer, Karl Kronenberger, denied that the company had threatened customers and stated that they had attempted to resolve disputes in good faith. He also suggested that a competitor of Ascend may be behind some of the allegations in the case.

The FTC’s lawsuit against Ascend sheds light on the dark side of e-commerce automation and the risks that consumers face when engaging with such businesses. As the agency continues its crackdown on deceptive practices in the industry, it serves as a warning to both consumers and companies alike to exercise caution and due diligence in their online transactions.