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On 26 February 2024, the Federal Trade Commission (FTC) announced a settlement regarding the public lawsuit against Roman Cresto, John Cresto, Andrew Chapman, and their companies, including Automators AI, Empire Ecommerce, and Onyx Distribution. The FTC alleged that the defendants operated a scheme promising significant earnings through e-commerce storefronts using artificial intelligence, misleading consumers with unfounded earnings claims. According to the FTC, the majority of the defendants' clients did not achieve the earnings promised to them or recover their significant investments, resulting in substantial financial losses for most clients. The lawsuit details a legal settlement that prohibits the defendants from engaging in certain business activities, including the sale of business opportunities or coaching related to e-commerce platforms. The settlement mandates a monetary penalty of USD 21’765’902.65, which is partially suspended based on the financial disclosures of the defendants. In addition, the settlement requires the surrender of assets for consumer redress, prohibits misleading business practices, and establishes strict compliance and reporting requirements to prevent future violations.
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