WASHINGTON, D.C. — The Federal Trade Commission (FTC) announced a proposed settlement permanently banning the operators of an alleged e-commerce business opportunity scheme and their affiliated companies from the industry. The settlement resolves allegations that the defendants misled consumers into paying millions of dollars for online store management services that failed to deliver promised returns.
Under the proposed agreement, the defendants must surrender cash, real estate, and personal property that will be used to provide consumer redress. The FTC filed the proposed order in the U.S. District Court for the Southern District of Florida.
Allegations of Deceptive Promises
In March 2025, the FTC filed a complaint against Click Profit and its operators, alleging they misrepresented their ability to create and manage profitable online stores for consumers on platforms such as Amazon and other third-party e-commerce marketplaces.
According to the complaint, the defendants falsely advertised that participants could earn hundreds of thousands—or even millions—of dollars in “guaranteed passive income”. Among the FTC’s findings, Click Profit and its operators:
- Made false or unsubstantiated earnings claims that rarely materialized.
- Misrepresented their use of advanced artificial intelligence to manage stores.
- Falsely claimed to have exclusive partnerships with major brands, including Nike and Disney.
- Used illegal contract clauses to intimidate customers and suppress negative reviews.
Following the FTC’s complaint, a federal court issued a temporary restraining order halting the operation and appointing a receiver to assume control. A preliminary injunction was later granted to prevent further harm while the case proceeded.
Permanent Ban and Monetary Judgments
The settlement permanently prohibits the defendants from:
- Engaging in any activities involving the sale, marketing, or operation of business opportunities.
- Making false statements about potential earnings, brand affiliations, or the use of artificial intelligence.
- Restricting consumers from posting truthful reviews or sharing factual information about the defendants’ practices.
The proposed orders impose significant monetary judgments:
- $13.6 million against defendants Craig Emslie, Patrick McGeoghean, William Holton, and their associated companies.
- $7.3 million against defendant Jason Masri and his affiliated entities.
While the judgments are partially suspended based on the defendants’ claimed inability to pay, the FTC noted that if any of them are found to have misrepresented their financial status, the full amounts will become immediately due.
Regulatory Oversight and Next Steps
The FTC Commissioners voted 3-0 to approve the stipulated final orders, which will take effect once approved and signed by a District Court Judge. These orders will carry the force of law and subject violators to further penalties if breached.
The case was led by FTC staff attorneys Lisa Bohl and Katharine Roller, marking another significant enforcement action by the agency aimed at protecting consumers from fraudulent online business schemes.
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