FTC Cracks Down on 'Passive Income' Scam: Click Profit Sued for Defrauding Customers
Summary
The FTC sued Click Profit, an Amazon automation company, for defrauding customers of millions through a 'passive income' scam involving exaggerated earnings claims and misrepresenting its use of AI to manage online storefronts, despite customers failing to recoup investments.
Key Points
- The FTC sued an Amazon automation company called Click Profit for allegedly defrauding customers of tens of millions of dollars through a 'passive income' scheme.
- Click Profit promised to open and manage profitable online storefronts for customers on Amazon, Walmart and TikTok in exchange for upfront investments, but failed to deliver as claimed.
- The company made exaggerated claims about potential earnings and use of AI technology, with co-founders appearing in marketing videos fanning cash, but most customers were unable to recoup their investments.