FTC Sues Click Profit For Deceptive AI Investment Promises

The Federal Trade Commission (FTC) has taken legal action against Click Profit, an e-commerce company accused of defrauding consumers through a “passive income” scheme.

The FTC alleges that Click Profit, along with its co-founders Craig Emslie and Patrick McGeoghean, misled people into investing tens of thousands of dollars in online storefronts, promising high returns that never materialized.

Click Profit, which also operated under the names FBALaunch, Automation Industries, and PortfolioLaunch, charged consumers between $45,000 and $75,000 to set up online stores on platforms like Amazon, Walmart, and TikTok.

Customers were also required to spend an additional $10,000 or more on inventory, with Click Profit taking up to 35% of any profits. The company claimed its AI-powered system could generate wealth, showcasing supposed success stories of storefronts making over $540,000 in monthly sales, as reported by CNBC.

However, the FTC says these claims were false. “In reality, the highly touted AI technology and brand partnerships do not exist, and the promised earnings never materialize,” the complaint states.

Despite promises of financial security, most consumers lost their investments, with some accumulating significant credit card debt. The FTC revealed that about 95% of Click Profit’s Amazon stores were suspended or terminated due to policy violations, and a third of the remaining stores earned less than $2,500 in lifetime sales.

Emslie, one of the company’s co-founders, aggressively marketed the program, often appearing in TikTok ads flaunting wads of cash. In one video, he claimed that traditional investments like “the stock market, real estate, or precious metals will never be able to offer you” the same level of security as Click Profit, as reported by CNBC.

The lawsuit also details how Click Profit allegedly silenced unhappy customers. One victim, who lost his life savings, posted a negative review online and was later threatened with a lawsuit. According to the FTC, Emslie’s attorney told the man, “F*** off,” when he asked for a partial refund.

FTC Bureau of Consumer Protection Director Christopher Mufarrige condemned the company’s actions, saying, “Click Profit misled consumers by falsely promising them guaranteed passive income using cutting-edge AI technology and exclusive brand partnerships,” reports CNBC

The FTC has filed a lawsuit in the U.S. District Court for the Southern District of Florida, seeking to ban Click Profit from doing business permanently and to secure financial relief for its victims. A federal court has already issued a temporary restraining order against the company while the case proceeds.