The Federal Trade Commission announced today that it has secured a permanent ban against FBA Stores, LLC (doing business as FBA Machine and formerly Passive Scaling), its principal Bratislav Rozenfeld, and affiliated entities, for allegedly deceiving consumers with false promises about earning passive income through AI-powered online storefronts. According to the FTC, the defendants took in more than $15 million from consumers who paid substantial upfront fees for a supposed turnkey e-commerce solution that rarely delivered on its income promises.
The final stipulated order, filed in federal court in New Jersey, prohibits Rozenfeld and his companies from promoting or selling any business opportunities in the future, making unsubstantiated earnings claims, or including contract terms that restrict consumers from leaving honest reviews. The order also requires the defendants to turn over funds and assets toward a judgment of more than $15.7 million—partially suspended due to claimed inability to pay, but subject to reinstatement if the financial representations prove false. Rozenfeld's spouse, Amanda Peremen, was named as a relief defendant and is required to surrender funds she received.
This action is the latest in a very clear—and aggressive—FTC enforcement focus on business opportunity scams, especially those tied to AI and automation claims. The agency has, in just the past few months, brought similar actions against:
Click Profit, which promoted an "AI supercomputer" that allegedly powered online storefronts on Amazon, Walmart, and TikTok. The FTC said most consumers earned little or nothing, despite spending tens of thousands.
Ecommerce Empire Builders, which marketed an "AI-powered ecommerce empire" solution and coaching program for up to $35,000, while promising unrealistic monthly earnings.
Ecom Genie / Profitable Automation, where the defendants allegedly promised six-figure monthly income through AI tools, leading to permanent bans and judgments totaling nearly $14 million.
Ganadores Ecommerce, involving false claims about an "infallible" business system combining ecommerce and real estate investing.
Growth Cave, which combined a purported passive income program with unlawful credit repair services, resulting in a $50 million enforcement action.
These cases share a common theme: bold income guarantees, inflated testimonials, and marketing centered on so-called automated or AI-driven systems—often backed by high-pressure sales tactics and substantial upfront fees.
Key Takeaways for Advertisers and Legal Teams
The FTC has made clear that it will not tolerate unsubstantiated earnings claims, deceptive AI marketing, or contract provisions that muzzle consumer reviews. For companies promoting business opportunities—especially those leaning on automation, software, or "AI" framing—the compliance bar is high:
- Income claims must be typical and substantiated.
- AI references must be accurate, not hype.
- Contracts must not include gag clauses or misleading terms.
- Consumer testimonials must reflect the general experience—not isolated success stories.
Today's action against FBA Machine is not an outlier—it's part of an aggressive, sustained campaign. Companies operating in this space (or even those that market AI and use consumer reviews and testimonials) should carefully review their marketing, claims substantiation, user agreements, and refund practices. The FTC isn't just sending warning letters—it's obtaining permanent bans, appointing receivers, and securing multi-million-dollar judgments.
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