'Passive Income' Amazon AI 'Scheme' Allegedly Scammed Customers Out of at Least $14 Million, According to the FTC The case is the latest in the FTC's crusade against automation companies.

Click Profit promised investors that it would build e-commerce stores on Amazon, Walmart, and TikTok and help them earn tens of thousands of dollars in passive income. All the client had to do was pay between $45,000 and $75,000 initially as a management fee, and then $10,000 more for inventory.

Now the Federal Trade Commission (FTC) is suing the company, alleging that consumers collectively lost at least $14 million by participating in the so-called investment opportunity.

On Tuesday, the FTC filed a lawsuit against Click Profit and its owners, Craig Emslie and Patrick McGeoghean, alleging that the company promised customers $150,000 in "guaranteed" sales by helping them sell brand-name products selected by its AI supercomputer. Click Profit said it would also handle all the logistics, product selection, shipping, and customer service. Investors would make money if products were sold, but Click Profit would receive a 25% to 35% cut.

However, the majority of investors found that the promised money never materialized. The agency requested that a federal court stop Click Profit from operating, and the request was granted earlier this month.

"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, in a statement. "Their deception caused individual consumers to lose tens of thousands of dollars while the Click Profit's operators enriched themselves."

The case is the latest in the FTC's crusade against "automation" companies that claim to launch and manage online businesses for clients in exchange for a hefty investment. The FTC sued Ascend Ecom in September 2024, and Empire in August 2023, over similar claims.

Related: The FTC Says a Major Ratings Website Published 'Fake' Reviews — Here's How to Avoid It Happening to Your Business

What Are the Allegations Against Click Profit?

Per the complaint, Click Profit has been operating as a business since at least 2021 under different names like Automation Industries and PortfolioLaunch. The company marketed its "scheme" as a "passive income" generator powered by AI with profits that "will outperform returns on traditional investments, like stocks and real estate."

Click Profit built credibility in advertisements, marketing materials, and sales pitches by claiming to have forged partnerships with companies like Disney, Colgate, and Nike that enabled the company to purchase prime merchandise in bulk at a discounted price. According to the FTC complaint, Click Profit does not have any affiliation with these companies, and the products the company sold on its e-commerce storefronts consisted of generic and off-brand goods like paper clips, food storage bags, and drying racks.

In advertisements, Click Profit also told customers that it spent $5 million on a supercomputer that used AI to find the "most profitable products." The FTC wrote in its complaint that "the highly touted AI technology and brand partnerships do not exist, and the promised earnings never materialize."

Related: Don't Copy Big Brands to Increase Your Sales on Amazon — Do This Instead

Amazon suspended or blocked about 95% of the stores Click Profit set up for violating its seller policies, per the complaint. After taking Amazon's fees into account, more than 20% of Click Profit's stores on Amazon earned no money at all while about 33% earned less than $2,500 in lifetime sales — not enough to recoup the at least $55,000 investment.

Customers were left with "burdensome credit card debt and unsold products," per the FTC.

Now the agency is asking for monetary relief for Click Profit's clients as well as a permanent barring of the company from doing business.