Saying they made false claims promising consumers a “passive income,” the Federal Trade Commission (FTC) has taken action against DK Automation and its owners Kevin David Hulse and David Shawn Arnett.
The moneymaking claims made by the defendants involved Amazon business packages, business coaching and cryptocurrency, the FTC said Wednesday (Nov. 16) in a press release.
“DK Automation ripped off consumers by manipulating reviews and making empty promises of big returns on cryptocurrency investment schemes and bogus business programs,” FTC Bureau of Consumer Protection Director Samuel Levine said in the release. “They ignored warnings that these practices were illegal, and now they are paying the price.”
The Amazon programs were sold as AMZDFY, Amazon Done For You, Amazon Done With You and under other names, according to the press release.
The FTC’s complaint alleges that the defendants harmed consumers by deceiving them about potential earnings, suppressing negative reviews and failing to provide required disclosures.
The defendants have reportedly agreed to a proposed court order that would require them to back up their claims in writing, stop deceiving consumers, stop interfering with reviews and complaints, and provide at least $2.6 million to the FTC that is to be used to refund consumers, according to the press release.
This announcement follows several other recent actions taken by the FTC.
In recent weeks, the agency has announced a $100 million lawsuit settlement with Vonage for junk fees levied on subscribers, a proposed order against educational technology provider Chegg for failing to improve its security practices after experiencing four data breaches and a proposed order against online alcohol marketplace Drizly and its CEO, James Cory Rellas, for failing to improve its data security despite being alerted two years before a data breach.
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