The Federal Trade Commission (FTC) has filed a lawsuit against Click Profit, an e-commerce company accused of orchestrating a massive fraud scheme that promised investors "passive income" through automated Amazon storefronts.
According to the FTC's complaint filed in Florida's Southern District Court, Click Profit and its co-founders Craig Emslie and Patrick McGeoghean allegedly scammed consumers by charging between $45,000 to $75,000 for initial investments, plus additional inventory costs exceeding $10,000.
The company claimed to use sophisticated AI technology and a "$5 million supercomputer" to identify profitable products, boasting partnerships with major brands like Nike, Disney, and Marvel. They promised investors "insane returns" surpassing stock market performance through automated Amazon stores.
However, the FTC revealed these claims were entirely fabricated. The alleged AI technology and brand partnerships were non-existent. About 95% of Click Profit's Amazon stores were suspended or terminated for violating platform policies. Most stores generated minimal revenue, with over 20% earning nothing and a third making less than $2,500 in lifetime sales.
The scheme left many investors in severe financial distress. One victim invested their life savings only to be terminated as a client with no returns. When the investor posted negative reviews online, they reportedly faced legal threats from Emslie's attorney who threatened to "take everything he and his wife owned."
The FTC is seeking to permanently bar Click Profit from conducting business and secure monetary compensation for victims. The company faces charges of violating the FTC Act, Consumer Review Fairness Act, and Business Opportunity Rule.
This case represents the latest FTC crackdown on e-commerce "automation" services that exploit consumers with false promises of guaranteed profits through AI-powered online stores.
Representatives for Click Profit and Emslie have not responded to requests for comment.