The Federal Trade Commission (FTC) recently took action against a business opportunity scheme known as Click Profit, which falsely promised consumers the opportunity to earn substantial profits through online sales. The FTC alleged that Click Profit and its owners deceived consumers by claiming they could make significant passive income using a proprietary system powered by artificial intelligence. This system purportedly allowed consumers to sell goods on popular online platforms such as Amazon, Walmart, and TikTok. Additionally, Click Profit falsely claimed to be affiliated with major companies like Nike and Disney to persuade consumers to invest tens of thousands of dollars each.
According to Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, Click Profit misled consumers by offering guaranteed passive income through advanced AI technology and exclusive brand partnerships. This deception resulted in individual consumers losing substantial amounts of money while the operators of Click Profit enriched themselves. The FTC is committed to holding the defendants accountable and seeking restitution for the victims who collectively lost millions of dollars.
Click Profit operated under various names such as FBALaunch, Automation Industries, and PortfolioLaunch. The company’s advertisements touted the business opportunity as a safe and proven method to generate wealth, promising profits that outperformed traditional investments in a consistent and predictable manner. Consumers who purchased the business opportunity were charged a management fee of at least $45,000, along with additional costs for inventory purchases. However, the FTC’s complaint revealed that most consumers did not see any returns on their investments and often ended up with significant credit card debt and unsold products.
The online advertising campaigns of Click Profit emphasized the potential for consumers to earn six-to-eight-figure incomes through their online storefronts. Co-founder Craig Emslie even appeared in advertisements flaunting large sums of cash to underscore the earning potential. The company promoted testimonials from customers who allegedly made substantial profits, while also implying that venture capital firms associated with Click Profit could buy out consumers’ online stores at a significant multiple.
Despite these promises, the FTC’s investigation uncovered that a significant portion of Click Profit’s stores on platforms like Amazon failed to generate any revenue, with many earning less than $2,500 in gross lifetime sales. After factoring in Click Profit’s fees and charges, most consumers were unable to recoup their initial investments, let alone achieve the promised profits. The complaint also revealed that Click Profit often delayed opening consumers’ stores and, in some cases, failed to open them at all. Furthermore, Amazon had blocked or suspended approximately 95% of Click Profit’s stores due to various violations.
Consumers who raised complaints against Click Profit often faced unresponsiveness from the company and only received refunds after involving external organizations like the Better Business Bureau or law enforcement. In some instances, Click Profit threatened customers with lawsuits for filing complaints, citing an unlawful non-disparagement clause in their contracts. The FTC’s complaint charges Click Profit, its co-founders, partners, and associated companies with violations of several laws, including the FTC Act and the Business Opportunity Rule.
The FTC’s swift action resulted in a temporary restraining order against Click Profit, halting its deceptive practices. The case will be decided by the U.S. District Court for the Southern District of Florida, with the FTC seeking justice for the affected consumers. The staff attorneys handling this matter are Lisa W. Bohl and James Davis from the FTC’s Midwest Region. As the case progresses, the FTC remains committed to protecting consumers from fraudulent business schemes and holding accountable those who engage in deceptive practices.
