FTC Action Halts Alleged AI-Powered Earnings Scheme

  • A federal court has issued a temporary restraining order against Automators, LLC, its affiliated entities and operators (collectively, “Automators”) in a lawsuit brought by the FTC alleging that these entities and individuals violated the FTC Act, the Business Opportunity Rule, and the Consumer Review Fairness Act by making false or unsubstantiated earnings claims to entice consumers into purchasing its ecommerce platform and AI coaching services.
  • According to the FTC’s complaint, Automators falsely promised high returns to consumers for purchasing a “venture capital-backed” and “artificial intelligence-integrated” ecommerce business opportunity to become a “silent partner” in online companies. The FTC also alleges that Automators made similar false or unsubstantiated claims about the profitability of its AI coaching services. According to the complaint, most consumers who purchased Automators’ products and coaching services did not recoup the advertised income, and many lost their life savings in the alleged scheme.
  • The TRO freezes the assets of Automators and the individual defendants and temporarily prohibits them from engaging in business activities or sharing consumer information. The FTC is seeking a permanent injunction against Automators and the individual defendants, monetary relief, and additional relief the Court finds just and proper.