United States of America: Filed FTC complaint in public lawsuit against Automators LLC et al. regarding possible violation of consumer protection regulations

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Description

Filed FTC complaint in public lawsuit against Automators LLC et al. regarding possible violation of consumer protection regulations

On 8 August 2023, the Federal Trade Commission (FTC) filed a complaint in the US District Court for the Southern District of California against Roman Cresto, John Cresto, and Andrew Chapman and their companies Automators AI, Empire Ecommerce, and Onyx Distribution regarding a possible violation of consumer protection regulations. The FTC claimed they misled consumers into investing USD 22 million in online stores using false income and profit claims. The defendants promised AI-backed success and offered to teach, setting up e-stores. However, according to the FTC complaint, most clients didn't achieve the promised earnings, facing losses instead.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
ML and AI development, other service provider, technological consumer goods
Implementation Level
national
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

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2023-08-08
under deliberation

On 8 August 2023, the Federal Trade Commission (FTC) filed a complaint in the US District Court for…

2023-08-11
under investigation

On 11 August 2023, the U.S. District Court for the Southern District of California delivered an int…

2024-02-26
under investigation

On 26 February 2024, the Federal Trade Commission (FTC) announced a settlement regarding the public…