Promises of 'Passive Income' On Amazon Led To Death Threats For Negative Online Review, FTC Says

'The Federal Trade Commission is cracking down on 'automation' companies that launch and manage online businesses on behalf of customers in exchange for an upfront investment,' reports CNBC's Annie Palmer. 'The latest case targets Ascend Ecom, which ran an e-commerce money-making scheme, primarily on Amazon.' The FTC accuses the e-commerce company of defrauding consumers of at least $25 million through false claims, deceptive marketing practices, and attempts to suppress negative reviews. From the report: Jamaal Sanford received a disturbing email in May of last year. The message, whose sender claimed to be part of a 'Russian shadow team,' contained Sanford's home address, social security number and his daughter's college. It came with a very specific threat. The sender said Sanford, who lives in Springfield, Missouri, would only only be safe if he removed a negative online review. 'Do not play tough guy,' the email said. 'You have nothing to gain by keeping the reviews and EVERYTHING to lose by not cooperating.'

Months earlier, Sanford had left a scathing review for an e-commerce 'automation' company called Ascend Ecom on the rating site Trustpilot. Ascend's purported business was the launching and managing of Amazon storefronts on behalf of clients, who would pay money for the service and the promise of earning thousands of dollars in 'passive income.' Sanford had invested $35,000 in such a scheme. He never recouped the money and is now in debt, according to a Federal Trade Commission lawsuit unsealed on Friday. His experience is a key piece of the FTC's suit, which accuses Ascend of breaking federal laws by making false claims related to earnings and business performance, and threatening or penalizing customers for posting honest reviews, among other violations. The FTC is seeking monetary relief for Ascend customers and to prevent Ascend from doing business permanently.

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