Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Biz-opp scheme operators agree to permanent ban, (Aug 26, 2025)

By Peter Reap, J.D., LL.M.

The FTC charged that the defendants promised big profits from online stores that never materialized.

In three proposed orders, the operators of a business opportunity scheme have agreed to a permanent ban on their further involvement in any sales or operations of any business opportunity, along with other restrictions, the FTC announced. The orders, filed in the federal district court in Miami for approval, follow up that court’s earlier issuance of a temporary restraining order and also require the defendants to turn over their personal and business assets (FTC v. Click Profit, LLC, No. 1:25-cv-20973-DSL (S.D. Fla. Aug. 22, 2025)).

The agency’s complaint charged that the defendants participated in deceptive and unfair acts or practices in violation of Section 5(a) of the FTC Act, the Business Opportunity Rule, the Consumer Review Fairness Act, and the Impersonation Rule, in the marketing and promotion of their online e-commerce store business opportunities.

The defendants, four individuals and their eight corporations doing business as Click Profit, allegedly deceived consumers by promising they could make large sums in “passive income” using a proprietary system powered by artificial intelligence that enabled consumers to sell goods through online platforms such as Amazon, Walmart, and TikTok. Click Profit also allegedly deceived consumers by claiming to be affiliated with major companies as a ploy to convince consumers to turn over tens of thousands of dollars each, according to the FTC’s complaint.

Temporary restraining order. The federal district court in Miami issued a temporary restraining order in March 2025 barring Click Profit and its owners from making earnings claims related to its business opportunity program, the FTC announced. The court found there was good cause to believe that in the marketing and selling of business opportunities the defendants violated the FTC Act as well as other laws enforced by the Commission in numerous instances. The agency showed the defendants were likely to have (1) made false or unsubstantiated claims about earnings, their affiliation with well-known brands, and their use of artificial intelligence; (2) violated multiple trade regulation rule provisions in the selling of Defendants’ products or services, and (3) used threats and non-disparagement clauses to discourage purchasers from publishing truthful reviews about the defendants and their products or service.

The proposed orders. If approved by the court, the proposed orders against Craig Emslie, Patrick McGeoghean, Click Profit, LLC, SA Automation Enterprise LLC, M23 Holdings, LLC, M7 Investments LLC, and Express Ecom LLC, William Holton and Ecom Direct LLC, and Jason Masri, Automation Industries LLC, and Click Profit Distribution, LLC will permanently ban the defendants from:

• any involvement with the sales, marketing, or operations of any business opportunity;

• making false claims about potential earnings, affiliation with other businesses, and use of artificial intelligence; and

• restricting consumers from reviewing or sharing truthful information about the defendants and their business practices.

The orders include a monetary judgment of $13.6 million against individual defendants Emslie, McGeoghean, Holton, and their affiliated entities, and a $7.3 million monetary judgment against Masri and his affiliated entities. The orders require the defendants to transfer to an appointed receiver various bank and financial accounts, cash, and property. The properties listed include Patek Phillipe and Rolex watches, real estate holdings, a Porsche, and a Ferrari F8 Spider.

The judgments have been partially suspended based on the defendants’ inability to pay the full amount. If the defendants are found to have made false claims to the FTC about their financial status, the full judgment would be immediately payable, according to the FTC.

The Case is No. 1:25-cv-20973-DSL.

Judge: Leibowitz, D.

Attorneys: Lisa W. Bohl for the FTC. Ayman Fikry Rizkalla (Akerman LLP) for Click Profit, LLC.

Companies: Click Profit, LLC

News: ConsumerProtection FederalTradeCommissionNews ArizonaNews