The Federal Trade Commission (FTC) has initiated legal action against Click Profit, an e-commerce company accused of misappropriating millions of dollars from consumers through a deceptive “passive income” scheme. This operation involved creating Amazon storefronts on behalf of clients and making extravagant claims about potential earnings significantly surpassing those available through traditional investments like the stock market.
On Tuesday, the FTC filed a lawsuit in the U.S. District Court for the Southern District of Florida against Click Profit and its co-founders, Craig Emslie and Patrick McGeoghean, along with two other associates. The FTC is seeking a court order to temporarily prevent these individuals from conducting further business activities.
This case is part of a broader crackdown by the FTC on e-commerce “automation” services, which claim to set up and manage online storefronts for clients. These companies typically charge substantial fees, luring consumers with promises of generating passive income in the range of tens of thousands of dollars. However, consumers often find themselves facing significant financial losses instead.
According to the FTC’s complaint, Click Profit operated under several names, including FBALaunch, Automation Industries, and PortfolioLaunch. The company assured investors that they would create “a massively profitable e-commerce store from the ground up” by facilitating product sales on platforms like Amazon, Walmart, and TikTok.
The alleged cost to consumers ranged from $45,000 to $75,000 for initial investments, plus an extra $10,000 or more for inventory costs. Furthermore, the company claimed up to 35% of any profits generated from these stores.
Marketing materials cited in the complaint featured assertions of a “safe, secure and proven” business opportunity. Click Profit published screenshots purportedly showcasing successful Amazon stores, including one that allegedly saw sales exceeding $540,000 in a single month.
Craig Emslie frequently appeared in TikTok videos and various online advertisements to promote the business opportunity. One advertisement featured Emslie claiming that investing with Click Profit offered more security than traditional investments in the stock market, real estate, or precious metals. Additionally, some TikTok videos depicted him alongside an image of Warren Buffett while brandishing stacks of cash, further enticing potential clients.
The FTC’s lawsuit against Click Profit underscores ongoing concerns about the legitimacy of e-commerce automation services and their marketing practices. As the agency continues to fight against deceptive business practices, consumers are urged to exercise caution and conduct thorough research before investing in such schemes. This case serves as a reminder of the risks associated with promises of easy income and the importance of regulatory oversight in protecting consumers from exploitation.
