By 
The Federal Trade Commission (FTC) has taken legal action against eCommerce platform Click Profit, accusing the company of misleading consumers with false claims of guaranteed passive income through online sales.
Allegations of Fraudulent Practices
In a statement released on March 18, the FTC announced that it had secured a court order to halt Click Profit’s operations. The commission alleges that the company fraudulently collected at least $14 million from customers by promoting a proprietary AI-powered system that supposedly enabled highly profitable online sales on platforms like Amazon, Walmart, and TikTok.
Click Profit also allegedly fabricated partnerships with major brands such as Nike and Disney to entice consumers into investing tens of thousands of dollars in the program.
“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.
“Their deception caused individual consumers to lose tens of thousands of dollars while Click Profit’s operators enriched themselves. The FTC is working to hold the defendants accountable and secure redress for their victims.”
Misleading Claims and Poor Business Outcomes
Despite Click Profit’s claims of financial success, the FTC’s findings reveal a starkly different reality:
- Over 20% of Click Profit stores earned no money at all.
- 95% of stores were either shut down or suspended by Amazon.
- Customers who managed to generate revenue were pressured into reinvesting earnings into additional inventory, leaving them financially strained.
FTC’s Broader Efforts in Consumer Protection
The case against Click Profit is part of the FTC’s ongoing efforts to combat fraudulent business practices and protect consumers from deceptive schemes. In 2024, the FTC reported that its enforcement actions resulted in $337.3 million in refunds for affected consumers.
“Getting money back for people across the country is a top priority for the FTC,” Mufarrige emphasized. “We will relentlessly pursue refunds for Americans who lost money to unlawful practices.”
As regulatory scrutiny on eCommerce fraud and deceptive financial schemes intensifies, cases like Click Profit highlight the importance of consumer awareness and compliance enforcement in the rapidly evolving digital business landscape.
Comments