United States of America: New Jersey District Court issued ruling in lawsuit against FBA Machine and affiliates for alleged deceptive e-commerce business opportunity practices

On 30 July 2025, the United States District Court for the District of New Jersey approved a stipulated order resolving the Federal Trade Commission (FTC’s) lawsuit against TheFBAMachine Inc. and its affiliates for promoting deceptive digital business opportunities. It was highlighted that the defendants had marketed automated Amazon storefronts and e-commerce schemes using misleading claims about earnings potential and Artificial Intelligence (AI) capabilities. The order permanently bans them from advertising, marketing, or selling any business opportunity, prohibits misrepresentations and gag clauses restricting customer reviews, and imposes a USD 15.77 million fine. It also requires the destruction and future non-use of customer data, and establishes 20-year compliance, recordkeeping, and reporting obligations.