Scammers Stole $14M+ Promising Passive Income From AI-Powered Amazon Shops: FTC
March 19, 2025
A federal court has temporarily shut down an online business that regulators accused of deceiving consumers out of more than $14 million with false promises of big earnings through artificial intelligence-powered online stores, officials said.
The Federal Trade Commission said Click Profit, operating under names like FBALaunch and Automation Industries, misled consumers into believing they could earn large sums in passive income by selling products on platforms like Amazon, Walmart, and TikTok. The FTC announced the legal action against Click Profit in a news release on Tuesday, Mar. 18.
Click Profit claimed to be affiliated with major brands like Nike and Disney to lure victims into paying tens of thousands of dollars, according to a complaint filed in the US District Court for the Southern District of Florida.
“Click Profit misled consumers by falsely promising them guaranteed passive income using cutting-edge AI technology and exclusive brand partnerships,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “Their deception caused individual consumers to lose tens of thousands of dollars while the Click Profit’s operators enriched themselves. The FTC is working to hold the defendants accountable and secure redress for their victims, who have collectively lost millions of dollars.”
According to the FTC, Click Profit charged consumers a minimum “management fee” of $45,000, plus thousands more for inventory, but few saw a return on their investment. Many lost their entire payments, while some ended up in deep credit card debt with unsold products.
Click Profit’s ads featured co-founder Craig Emslie flashing wads of cash, claiming customers could earn six-to-eight-figure incomes. The company also pushed misleading testimonials and suggested that customers’ stores could later be bought by venture capital firms at a “3-6x multiple,” the complaint states.
FTC investigators found that after Amazon’s fees, more than 20 percent of Click Profit’s stores made no money, and another third earned less than $2,500 in lifetime sales. With startup costs, ongoing fees, and profit-sharing, most customers never recovered their investment.
The FTC also found that Amazon blocked, suspended, or terminated about 95 percent of Click Profit’s stores.
“In reality, the highly touted AI technology and brand partnerships do not exist, and the promised earnings never materialize,” the complaint said.
Customers who tried to get refunds were often ignored. Others were threatened with lawsuits for complaining, with the company citing a non-disparagement clause that the FTC called unlawful.
The complaint names Click Profit, co-founders Emslie and Patrick McGeoghean, partners Jason Masri and William Holton, and several related companies. They are charged with violating multiple consumer protection laws, including the FTC Act and the Business Opportunity Rule.
The court issued a temporary restraining order against Click Profit on Wednesday, Mar. 5.
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