[CNBC] Amazon AI scammers blew millions on Lake Como wedding and cars, FTC alleges

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2 more guru’s down.

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Well they sound awful and I’m glad they are gone.

Unless, of course, they were really just helping people the only way possible and the accusations against them are the result of vindictive actors who want to protect the status quo to the point where they are willing to blackmail and threaten to bring down these two heroes of the common man.

Thank you for sharing.

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Rumour has it that Ed R. is looking to hire better spinmeisters for his image-polishing PR campaign.

Apparently you could meet the minimal qualifications, if you were of a mind to do so… :wink:

Sorry, no can do.

I’m not interested in being implicated in his next investigation, and I need to be able to sleep at night which I find difficult when engaging in ethically deficient enterprises.

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Same here!

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Given that you’ve both long demonstrated that you’re persons of integrity, that position comes as no surprise!

The gurus would do well to follow that example, but sadly they won’t.

Since I have had little positive to say about the FTC, I feel compelled to applaud this action.

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"The Cresto brothers also took 35% of any profits from their “partners’”

What the fork?!

You pay this company for the knowledge and training as well as “working capital” and they still take 35%?

“Cohen told CNBC in an interview that the Crestos first messaged him via Instagram and that they met over Zoom later that month. John Cresto assured Cohen in that Zoom meeting that Empire was not facing any litigation or major concerns, beyond a “couple” of unhappy clients.”

Red flag. Red flag. Red flag.

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I agree so many red flags.

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My baseline level of cynicism and distrust makes me see red flags everywhere, but I have also never conducted a multi-million dollar business deal or purchased a business, so I have no idea what constitutes “normal procedure” for these sorts of things. I assumed that in a legitimate deal, lawyers would be involved, as well as accountants and a more thorough disclosure of the business in question’s finances beyond a PowerPoint presentation showing some line graphs going up. Maybe that’s just naivete on my account, but “they told me business was good” seems a bit… credulous.

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But drop shipping isn’t against policy…from another post

By October 2022, Amazon had either suspended or terminated most of those stores for violating its policies around intellectual property and a business method called dropshipping, where companies never actually have the inventory they’re selling, and instead order products through a manufacturer after a shopper makes a purchase, the complaint says. The majority of Empire’s storefronts on Walmart’s marketplace were either never activated or terminated for policy violations, according to the FTC.

Dropshipping

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Dropshipping isn’t necessarily against policy, but it’s very easy to do wrong and takes a lot of knowledge to do right.

It is far more likely that these storefronts were suspended for IP violations and the other violations that go along with dropshipping than for the dropshipping itself. These… people… seem like the standard - alibaba direct to buyers on othjer brand’s PL listings for quick sales to look legitimate and get more money, then run when it hits the fan - types.

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I think denotation vs connotation is being highlighted

If nearly 100% of the time dropshipping isn’t viable - the probability that it is viable are practically 0

And therefore, what dropshipping connotes is precisely against policy.

Thus the myriad violations.

Just because an sme has refined their supply chain for just in time ordering legitimately to then adequately stay within policy aka the denotative drop shipping - doesn’t automatically classify it under the same umbrella nor is it what is being advertised or promoted or taught.

But yes.

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Lets be clear, authorized vendor drop shipping is NOT what any of us think when we say “drop shipping” or “suspended for drop shipping.”

These guys were most likely OA or even worse drop shipping from OTHER Amazon 3ps (or Amazon themselves) to end users

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Drop shipping is sometimes a viable strategy and it built Amazon in its early days.

A wholesale distributor with deep inventory, and paperwork designed for drop shipping - Ingram Books fulfilled most of Amazon’s orders/

There are longtime booksellers on Amazon selling selections of new books from Ingram’s catalog to this day.

These sellers know what to select to have profitability and avoid stock outs, means means they stay away from the post popular books.

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