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Guide

How to Spot Amazon FBA Course Scams

Warning signs of Amazon FBA course and done-for-you store scams, the FTC cases behind them, what the law requires sellers to disclose, and where to report.

By OOSClub · Last reviewed

Researched from public information

Amazon FBA course scams sell the idea that someone else can build you an Amazon business that earns money while you sleep. The worst of them take tens of thousands of dollars to run a "done-for-you" store that loses money or gets suspended. This guide covers the FTC cases behind these schemes, the warning signs, what the law says sellers must tell you, and where to report.

What these schemes sell#

Most fall into two types, and many sell both:

  • Courses and coaching. A cheap or free "system" that leads to expensive mentoring, private groups and upsells.
  • "Automation" or done-for-you stores. You pay a large setup or management fee, plus money for inventory, and the company says it will run an Amazon, Walmart or TikTok Shop store for you. The pitch is passive income, often powered by "AI."

The FTC has a name for the second kind: a business opportunity. That matters, because business opportunities come with legal disclosure rules, covered below.

FTC cases against Amazon store schemes#

The FTC has sued a string of these operators. All of the claims below are the FTC's allegations unless a court has ruled, and "proposed" orders take effect once a judge signs them.

SchemeWhat the FTC says it promisedOutcome
Automators AIPassive income from AI-powered Amazon and Walmart storesSued August 2023; February 2024 settlement banned most defendants from e-commerce business opportunities, with a $21.8 million judgment, partially suspended
FBA Machine / Passive ScalingGuaranteed income from AI-powered stores, sold as "risk-free" with refund guarantees the FTC says weren't honoredSued June 2024; July 2025 proposed settlement with a permanent ban and a $15.7 million judgment, partially suspended
Ascend EcomAI tools to earn thousands a month in passive income from online storesAnnounced September 2024; June 2025 proposed order banning the company and its owners, William Basta and Jeremy Leung, with a $25 million judgment, partially suspended
Ecommerce Empire BuildersAn "AI-powered Ecommerce Empire" through training or done-for-you storesHalted September 2024; May 2025 court order banning it and owner Peter Prusinowski from selling business opportunities, with a $9.8 million judgment, partially suspended
Click ProfitPassive income from AI-powered Amazon, Walmart and TikTok stores, and ties to Nike and DisneyHalted March 2025; August 2025 proposed settlement with a permanent ban and judgments of $13.6 million and $7.3 million, partially suspended

"Partially suspended" means the defendants pay what they can now, and owe the full amount if they lied about their finances.

The Click Profit complaint shows how these stores tend to end. The FTC says customers paid management fees of at least $45,000 plus thousands for inventory, more than a fifth of the stores earned nothing after Amazon's fees, and Amazon blocked, suspended or terminated about 95% of them. The money is gone, and the Amazon account in your name can be gone too.

Red flags#

  • Income screenshots and lifestyle ads. One Click Profit ad showed a co-founder fanning himself with cash. Revenue screenshots don't show costs, refunds or how many buyers lost money.
  • Passive income from a store someone else runs. Every case above was built on this.
  • "Guaranteed" returns or "risk-free" offers. The FTC alleged Passive Scaling's refund guarantee wasn't honored.
  • Pressure to decide now: limited spots, expiring prices, calls that push for payment on the spot. The FTC lists pressure to buy now as a classic sign.
  • A cheap entry product that leads to expensive coaching. The FTC says to stop if a coach asks you to pay even more to help your business succeed.
  • Claimed brand partnerships or "exclusive supplier" deals you can't verify.
  • Contracts that ban negative reviews, or threats against people who complain. Both Ascend Ecom and Click Profit were accused of this.
  • Ungating services that supply invoices. Amazon's approval for restricted brands needs real invoices. Amazon deactivates accounts for "forged or manipulated" documents, and its staff have said the seller is responsible for verifying them. Our guide to Amazon ungating explains the real process.
  • Requests for your Amazon login, or to open a seller account in your name that they control.

What the law says sellers must tell you#

The FTC's Business Opportunity Rule covers offers where you pay to start a business and the seller says it will help set it up or run it, as done-for-you stores do. Covered sellers must give you a one-page disclosure document seven days before you pay or sign. It must say:

  • whether the company or its key people faced certain lawsuits in the last ten years;
  • whether it has a refund or cancellation policy, and what it is;
  • whether it makes earnings claims;
  • contact details for at least 10 past buyers.

If the seller makes any earnings claim, it must also give you a separate earnings claim statement showing the dates, and the number and percentage of buyers who earned at least that much. The FTC notes that "up to" claims still count. A seller who won't give you these documents is telling you something.

Courses that only teach may fall outside this rule, but false earnings claims are still illegal. The FTC has sent notices to more than 1,100 businesses, including business opportunities and investment coaching companies, warning against false earnings, no-experience and no-risk claims. A company that keeps doing it after a notice can face civil penalties of up to $53,088 per violation, the FTC's 2025 figure; the amount is adjusted for inflation.

What a more trustworthy course looks like#

OOSClub doesn't endorse any course. Signs that point the right way:

  • No income promises, or claims that come with a written earnings statement and real numbers.
  • Clear about costs and risks: Amazon's fees, restricted brands, account suspensions and slow months. Our guide to Amazon FBA fees covers the fees.
  • Teaches you to run your own account, rather than asking for access to it.
  • A named person or company you can look up, with complaint history you can check.
  • Written refund terms you can read before you pay.

Checking the refund terms#

Read the refund policy before you pay, and save a copy. Look for:

  • the time limit, and whether it starts at purchase or at access;
  • conditions such as "complete every module" or "attend every call," which can make a refund impossible in practice;
  • whether inventory money, setup fees or ad spend are excluded;
  • whether a "guarantee" is a refund or just more coaching.

Pay by card or through a platform with a dispute process, never by wire, Zelle or crypto. Our guide to buying on Whop explains how platform payments protect you.

Where to report#

Report a scam to the FTC at ReportFraud.ftc.gov or 877-382-4357, and to the attorney general in your state and in the state where the seller is based. The FTC also suggests the Better Business Bureau. Be wary of anyone who offers to recover your money for a fee.

The same playbook shows up elsewhere. See our guides to trading scams and bot and cook group scams.

Courses on OOSClub#

OOSClub course listings show who runs each course, what it costs, its refund terms and when we last checked them. We don't list done-for-you store services or invoice sellers. Browse the courses hub.

Frequently asked questions

Are Amazon automation stores a scam?

Not every service that helps sellers is a scam, but the FTC has sued several done-for-you Amazon store operators, including Automators AI, Passive Scaling, Ascend Ecom and Click Profit, for false earnings claims. In the Click Profit complaint, the FTC says Amazon blocked, suspended or terminated about 95% of the stores. Treat any promise of passive income from a store someone else runs as a major red flag.

Is it illegal to promise earnings in a business course?

Earnings claims aren't banned, but they must be true and backed up. Under the FTC's Business Opportunity Rule, sellers covered by it must give you a one-page disclosure document at least seven days before you pay, plus a separate earnings claim statement showing how many buyers actually earned the amount claimed.

How do I get my money back from an Amazon course?

Start with the seller's written refund policy and keep every message. If you paid by card or through a platform with a dispute process, you may be able to dispute the charge. Report the seller at ReportFraud.ftc.gov and to your state attorney general.

Where do I report an Amazon FBA course scam?

Report it to the FTC at ReportFraud.ftc.gov or 877-382-4357, and to the attorney general in your state and in the state where the seller is based. The FTC also suggests the Better Business Bureau.

Sources

  1. In August 2023 the FTC sued Automators AI and its operators, who promised passive income from AI-powered Amazon and Walmart stores; a February 27, 2024 settlement banned most defendants from e-commerce business opportunities and coaching, with a $21.8 million partially suspended judgment. www.ftc.gov, accessed
  2. The FTC's September 25, 2024 Operation AI Comply announcement covered Ascend Ecom, Ecommerce Empire Builders and FBA Machine/Passive Scaling, all promising income from AI-powered online stores; courts had halted each and appointed receivers. www.ftc.gov, accessed
  3. The FTC alleged that FBA Machine/Passive Scaling promoted a risk-free model with refund guarantees it didn't honor, and that Ecommerce Empire Builders sold training for about $2,000 and done-for-you stores for tens of thousands of dollars. www.ftc.gov, accessed
  4. On May 9, 2025 the FTC announced a court order, entered May 8, 2025, permanently banning Ecommerce Empire Builders and Peter Prusinowski from selling business opportunities, with a $9,786,124 partially suspended judgment. www.ftc.gov, accessed
  5. On June 23, 2025 the FTC announced a proposed order banning Ascend Ecom and owners William Basta and Jeremy Leung from selling business opportunities or coaching, with a $25 million partially suspended judgment; it alleged at least $25 million in losses. www.ftc.gov, accessed
  6. On July 30, 2025 the FTC announced a proposed settlement permanently banning Bratislav Rozenfeld and FBA Machine (formerly Passive Scaling) from selling business opportunities, with a $15.7 million partially suspended judgment; the FTC sued in June 2024. www.ftc.gov, accessed
  7. The FTC's March 18, 2025 release says Click Profit pitched passive income from AI-powered Amazon, Walmart and TikTok stores, charged fees of at least $45,000, that over a fifth of its stores earned nothing after Amazon's fees, and that about 95% of its Amazon stores were blocked, suspended or ended. www.ftc.gov, accessed
  8. The FTC alleged Click Profit claimed ties to Nike and Disney, showed a co-founder fanning himself with cash in ads, and threatened complainers with lawsuits under a non-disparagement clause; a court entered a TRO March 5, 2025. www.ftc.gov, accessed
  9. On August 25, 2025 the FTC announced a proposed settlement permanently banning Click Profit's operators from business opportunities, with partially suspended judgments of $13.6 million and $7.3 million. www.ftc.gov, accessed
  10. The FTC's Business Opportunity Rule requires covered sellers to give a one-page disclosure document seven days before the buyer signs or pays, covering lawsuits, refund policy, earnings claims and at least 10 past buyers, plus a separate earnings claim statement when earnings are claimed. www.ftc.gov, accessed
  11. The FTC advises getting earnings claims in writing, choosing your own references to call, checking complaints with the state attorney general and BBB, notes 'up to' claims still count, and takes complaints at 1-877-382-4357. www.ftc.gov, accessed
  12. The FTC lists signs of a business or coaching scam, including guaranteed income or a proven system, being asked to pay even more to succeed, pressure to buy now, and claims you don't need to understand the business. consumer.ftc.gov, accessed
  13. The FTC sent notices to more than 1,100 businesses, including business opportunities and investment coaching companies, warning against false earnings, no-experience, act-now and risk-free claims; it cited penalties of up to $43,792 per violation. consumer.ftc.gov, accessed
  14. The FTC said on February 11, 2025 that the maximum civil penalty under FTC Act Sections 5(l) and 5(m)(1)(A) rose from $51,744 to $53,088 per violation, effective January 17, 2025. www.ftc.gov, accessed
  15. Amazon staff told a seller deactivated for 'forged or manipulated' compliance documents that sellers are responsible for verifying their supply chain documents, and that accounts with documents that can't be verified are not eligible for reactivation. sellercentral.amazon.com, accessed