# \[CNBC\] FTC cracks down on DoNotPay, others for ‘deceptive AI claims and schemes’ **URL:** \ **Category:** News for Ecomm Sellers\ **Tags:** ftc, scam, ai\ **Created:** [September 25, 2024, 9:01pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791 "2024-09-25T21:01:37Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Pepper\_Thine\_Angus](https://sellersasksellers.com/user_avatar/sellersasksellers.com/pepper_thine_angus/32/56_2.png) [@Pepper\_Thine\_Angus](https://sellersasksellers.com/u/Pepper_Thine_Angus)\ **Post date:** [September 25, 2024, 9:01pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/1 "2024-09-25T21:01:37Z")
> **[FTC cracks down on DoNotPay, others for 'deceptive AI claims and schemes'](https://www.cnbc.com/2024/09/25/ftc-crackdown-ai-claims-donotpay-companies.html)** > > Federal Trade Commission Chair Lina Khan said, "Using AI tools to trick, mislead, or defraud people is illegal." Of note for Ecommerce: > In a second lawsuit, filed under seal in June in New Jersey federal court, the FTC targeted an opportunity scheme that operated under the names Passive Scaling and FBA Machine, which allegedly cost customers around $16 million or more based on deceptive claims of guaranteed income through online storefronts that purportedly used AI-powered software. > . > In a third lawsuit, filed in Pennsylvania federal court, the FTC accuses Ecommerce Empire Builders of “falsely claiming to help consumers build an ‘AI-powered Ecommerce Empire’ by participating in its training programs that can cost almost $2,000 or by buying a ‘done for you’ online storefront for tens of thousands of dollars,” the agency said. > As with the other two lawsuits, a judge has put the scheme under the control of a receiver, according to the FTC. > . > In a regulatory complaint, the FTC targeted the company Rytr, which offers for sale an AI writing assistant, which among other things generated testimonials and customer reviews. > . > The FTC said that the service “generated detailed reviews that contained specific, often material > details that had no relation to the user’s input, and these reviews almost certainly would be false for the users who copied them and published them online.” > . > “In many cases, subscribers’ AI-generated reviews featured information that would deceive potential consumers who were using the reviews to make purchasing decisions,” the agency said. > . > Rytr has agreed to settle the case through a consent order, which would bar the company from offering or selling services generating consumer reviews or testimonials. ---
**Author:** ![HobbesIsMyTiger](https://sellersasksellers.com/user_avatar/sellersasksellers.com/hobbesismytiger/32/8000_2.png) [@HobbesIsMyTiger](https://sellersasksellers.com/u/HobbesIsMyTiger)\ **Post date:** [September 25, 2024, 9:52pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/2 "2024-09-25T21:52:40Z")
> [@Pepper\_Thine\_Angus](#): > > Rytr has agreed to settle the case through a consent order, which would bar the company from offering or selling services generating consumer reviews or testimonials. And the 8 million dollar fine? No? Nothing? Really? ---
**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\ **Post date:** [September 27, 2024, 12:01pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/3 "2024-09-27T12:01:23Z")
> [@Pepper\_Thine\_Angus](#): > > _by participating in its training programs that can cost almost $2,000 or by buying a ‘done for you’ online storefront for tens of thousands of dollars_ 😓 So many potential Sellers believed this would work. I don’t understand how or why, but I hate that they were exploited by grifters and scammers like this. So I’m going to name and shame the trade names in the first 3 of these 4 FTC lawsuits (because the company in the fourth lawsuit, Rytr, was clear that it offered fake AI-generated customer reviews–an obvious no-no): - Ascend CapVentures [(update 23 June 2025)](https://test.sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/7?u=papy) - Ascend Ecom [(update 23 June 2025)](https://test.sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/7?u=papy) - ACV Nexus [(update 23 June 2025)](https://test.sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/7?u=papy) - Ecommerce Empire Builders [(update 9 May 2025)](https://test.sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/6?u=papy) - FBA Machine - Passive Scaling There are no shortcuts in ecommerce. If it sounds too good to be true, it’s probably illegal. ---
**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\ **Post date:** [May 9, 2025, 6:16pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/6 "2025-05-09T18:16:02Z")
> [@papy](#): > > - Ecommerce Empire Builders This business and its principal Peter Prusinowski (Peter Pru) has been shut down, all assets forfeited, and banned from future ecom guru activities. > _In its complaint against the operation, [the FTC alleged](https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-announces-crackdown-deceptive-ai-claims-schemes) that EEB offered training programs that cost nearly $2,000, as well as “done for you” online storefronts that cost consumers as much as $35,000. The company promised consumers profits of $10,000 each month, but the complaint charged that these profits never materialized, and in many cases left consumers with significant losses. The complaint charged that Prusinowski used consumers’ money to enrich himself while failing to deliver on the scheme’s promises._ > **[FTC Action Ends Ecommerce Empire Builders Online Business Opportunity Scam](https://www.ftc.gov/news-events/news/press-releases/2025/05/ftc-action-ends-ecommerce-empire-builders-online-business-opportunity-scam)** > > A Federal Trade Commission lawsuit has put a stop to Ecommerce Empire Builders’ (EEB) business opportunity scam that used false promises of large profits to entice consumers into paying for help st And what was the “done for you” business model? Ding ding ding if you guessed drop shipping! > _In both their self-study and business opportunity programs, Defendants promote a “dropshipping” business model. In the dropshipping model, an online store is created and offers products without keeping them in stock. When a shopper purchases the product from the online store, the product is then ordered from a third-party and shipped directly to the shopper. Defendants instruct clients to find cheap products from Chinese dropshipping companies and then market and sell them to shoppers at a higher price through the stores Defendants build for their clients._ ![Screenshot_20250509-141139_Acrobat for Samsung](https://sellersasksellers.com/uploads/default/original/2X/2/243341222bde10370dcfaa363812e3d40d18b658.jpeg) Of course Peter Pru made outrageous earnings claims all over social media: ![Screenshot_20250509-141332_Acrobat for Samsung](https://sellersasksellers.com/uploads/default/original/2X/5/5d57a7e906843aca5bc3cb1d2aa0e36761aee93a.jpeg) ![Screenshot_20250509-141305_Acrobat for Samsung](https://sellersasksellers.com/uploads/default/original/2X/6/6dcb7fec61b96b422a1e5bce1fbdc4b177b53234.jpeg) > **[2423027ecommercebuilderscomplaint.pdf](https://www.ftc.gov/system/files/ftc_gov/pdf/2423027ecommercebuilderscomplaint.pdf)** > > 702.33 KB ---
**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\ **Post date:** [June 23, 2025, 10:01pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/7 "2025-06-23T22:01:16Z")
> [@papy](#): > > - Ascend CapVentures > - Ascend Ecom > - ACV Nexus Some more fallen dominoes. > [@](#): > > According to the complaint, Ascend charged consumers tens of thousands of dollars to open storefronts through major online retailers, but failed to deliver on the promised income, and attempted to stop the consumers they harmed from filing complaints or reviews about the operation. Ascend operated under several different names, including Ascend Ecom, Ascend Ecommerce, Ascend CapVentures, ACV Partners, ACV, Accelerated eCom Ventures, Ethix Capital by Ascend, and ACV Nexus. > > The [proposed settlement order](https://www.ftc.gov/legal-library/browse/cases-proceedings/ascend-ecom-timeline-item-2025-06-23) would: > > - permanently ban the defendants from selling or marketing any business opportunity or business coaching products and services; > - prohibit them from making any misleading or unsubstantiated earnings claims; > - prohibit them from deceiving consumers about any product or service they sell; > - prohibit them from including or enforcing any part of a contract that restricts a consumers’ ability to file complaints or reviews; and > - require them to turn over assets, including the contents of bank accounts and the proceeds from the sale of real estate properties, which will be used to compensate affected consumers. > > The proposed order includes a total monetary judgment of $25 million, which is partially suspended based on the defendants’ inability to pay the full amount. > **[FTC Case Leads to Order Banning Ascend Ecom and Its Owners from Business...](https://www.ftc.gov/news-events/news/press-releases/2025/06/ftc-case-leads-order-banning-ascend-ecom-its-owners-business-opportunity-marketing)** > > The operators of Ascend Ecom, an online business opportunity that allegedly cost consumers millions of dollars, will be banned from selling business opportunities and required to turn over assets t ---
**Author:** ![papy](https://sellersasksellers.com/user_avatar/sellersasksellers.com/papy/32/7639_2.png) [@papy](https://sellersasksellers.com/u/papy)\ **Post date:** [July 30, 2025, 7:07pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/8 "2025-07-30T19:07:19Z")
> [@papy](#): > > - FBA Machine > - Passive Scaling \>The owner of a business opportunity scheme will be **permanently banned** from selling business opportunities in settlement of Federal Trade Commission allegations that he and his company deceptively guaranteed consumers income through online storefronts. Additionally, FBA Machine (formerly Passive Scaling) and its owner Bratislav Rozenfeld (also known as Steven Rozenfeld and Steven Rozen) will be **required to turn over the contents of multiple financial accounts** and any funds realized upon the sale of real estate property. The proceeds will be used for consumer redress. > **[FTC Obtains Permanent Ban of E-Commerce Business Opportunity Scheme Operator](https://www.ftc.gov/news-events/news/press-releases/2025/07/ftc-obtains-permanent-ban-e-commerce-business-opportunity-scheme-operator)** > > The owner of a business opportunity scheme will be permanently banned from selling business opportunities in settlement of Federal Trade Commission allegations that he and his company deceptiv ---
**Author:** ![HobbesIsMyTiger](https://sellersasksellers.com/user_avatar/sellersasksellers.com/hobbesismytiger/32/8000_2.png) [@HobbesIsMyTiger](https://sellersasksellers.com/u/HobbesIsMyTiger)\ **Post date:** [July 30, 2025, 8:01pm UTC](https://sellersasksellers.com/t/cnbc-ftc-cracks-down-on-donotpay-others-for-deceptive-ai-claims-and-schemes/4791/9 "2025-07-30T20:01:28Z")
> [@papy](#): > > The owner of a business opportunity scheme will be **permanently banned** from selling business opportunities I’m still surprised this isn’t part of plea deals granted to many other e-criminals.