If something seems too good to be true, it probably is. The Federal Trade Commission (FTC) is suing Click Profit, an e-commerce company, for allegedly deceiving customers with promises of massive passive income. Click Profit claimed its proprietary, AI-powered system could generate significant profits for clients by creating and managing Amazon storefronts.
The FTC alleges that Click Profit took millions of dollars from consumers, promising substantial earnings from online sales. The company told potential investors it would use cutting-edge AI and partnerships with major brands like Nike, Disney, Dell, Colgate, and Marvel to build e-commerce stores, primarily selling products on Amazon, Walmart, and TikTok. The company convinced individuals to invest tens of thousands of dollars, claiming its system was “safe, secure, and proven to generate wealth.” Social media ads advertised potential six-to-eight figure incomes.
According to the FTC complaint, co-founder Craig Emslie was featured in advertisements, at one point appearing with a wad of cash near an image of Warren Buffett. Consumers were charged a management fee between $45,000 and $75,000, plus $10,000 for store inventories. Additionally, the FTC says Click Profit took up to 35% of any profits from customers’ stores, with customers collectively losing at least $14 million.
Click Profit also claimed it had invested $5 million to build a “super computer” and other AI technologies to locate the most profitable products, reporting nearly $100 million in sales. The company also implied that venture capital firms associated with Click Profit might buy the online stores “at a 3-6x multiple.”
“In reality, the highly touted AI technology and brand partnerships do not exist, and the promised earnings never materialize,” the FTC stated in its complaint. After factoring in Amazon’s fees, the complaint shows that over one-fifth of the company’s stores on the platform made no money, and another third earned less than $2,500 in gross lifetime sales. With Click Profit’s fees, ongoing charges, and profit share, most consumers couldn’t recoup their investments, let alone earn the promised income; some customers accrued substantial credit card debt and were left with unsold products.
Further allegations claim Click Profit often took months to launch customer stores, and sometimes they never launched at all. One individual who lost their life savings claimed that after posting a negative online review, Emslie’s attorney threatened to sue. The consumer removed the review but, when asking for a partial refund, the attorney allegedly responded with a vulgar message from Emslie. According to the complaint, Amazon has blocked, suspended, or terminated roughly 95% of Click Profit’s stores for violating seller policies. The FTC has secured a temporary court order halting the company’s operations and seeks to permanently prohibit Click Profit from doing business and provide monetary relief for the victims.
