FTC Settles Deceptive AI Earnings Claims Against Click Profit for Over $20 Million

In August 2025, the Federal Trade Commission (FTC) secured proposed stipulated final orders in the U.S. District Court for the Southern District of Florida against the operators of Click Profit, LLC, resolving allegations of a multi-million dollar e-commerce business opportunity scheme that used false "AI-washing" and passive income claims to deceive consumers. The settlements resulted in a permanent ban from the industry for the operators and monetary judgments totaling over $20.9 million.

The AI System and Deceptive Practices at Issue

Click Profit and its operators marketed an e-commerce business opportunity, promising to build, manage, and run highly profitable digital storefronts on third-party platforms like Amazon. To entice consumers, they falsely claimed to utilize a "proprietary advanced AI technology" and "advanced artificial intelligence" to optimize the stores and generate hundreds of thousands of dollars in guaranteed "passive income." They also fabricated exclusive brand partnerships with major suppliers like Nike and Disney.

In reality, the promised AI-driven returns failed to materialize. According to the FTC's complaint, a fifth of Click Profit's customers earned absolutely no money after deducting fees, and another third made less than $2,500. Furthermore, the operators used illegal contract clauses and intimidation tactics to suppress negative consumer reviews.

Legal Basis and Regulatory Charges

The FTC charged Click Profit and its operators under Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices. The complaint alleged that the defendants' claims regarding potential earnings, brand affiliations, and the use of advanced AI technology were false, misleading, and entirely unsubstantiated.

Outcome and Penalties

Under the proposed settlements approved by the court on August 26, 2025, the defendants are permanently banned from the business opportunity industry and are prohibited from making deceptive earnings claims, false business affiliation claims, or misrepresentations about their use of AI.

The orders impose substantial financial judgments totaling over $20.9 million:

• A $13.6 million monetary judgment against individual operators Craig Emslie, Patrick McGeoghean, William Holton, and their affiliated corporate entities (SA Automation Enterprise LLC, M23 Holdings, LLC, M7 Investments LLC, and Express Ecom LLC).
• A $7.3 million monetary judgment against individual operator Jason Masri and his affiliated entities (Automation Industries LLC and Click Profit Distribution, LLC).

The judgments require the defendants to turn over cash, real estate, and personal property to the FTC for consumer redress, with the remainder of the judgments suspended due to the defendants' financial status. If the defendants are found to have misrepresented their assets to the FTC, the full judgments will become immediately due.