AI enforcement · Federal Trade Commission

FBA Machine agrees to settle FTC charges

FBA Machine · settlement proposed · what the party said about AI. The newest step in this record is dated 30 Jul 2025.

The agency’s words

quoted from the release
Party
the scheme, which has operated under the names Passive Scaling and FBA Machine — FTC Announces Crackdown on Deceptive AI Claims and Schemes
AI
The rebranded marketing materials claim that FBA Machine uses “AI-powered” tools to help price products in the stores and maximize profits. — FTC Announces Crackdown on Deceptive AI Claims and Schemes
Alleged
The FTC says: cost consumers more than $15.9 million based on deceptive earnings claims that rarely, if ever, materialize — FTC Announces Crackdown on Deceptive AI Claims and Schemes
Docket
The release names no docket number.

Every step

oldest first
  1. 25 Sep 2024 Court halts FBA Machine at the FTC’s request · halted by a court order As a result of the FTC’s complaint, a federal court issued an order temporarily halting the scheme and putting it under the control of a receiver. The case against the scheme is still under way and will be decided by a federal court. — FTC Announces Crackdown on Deceptive AI Claims and Schemes; date from the release’s date line, “September 25, 2024 Tags:”
  2. 30 Jul 2025 FBA Machine agrees to settle FTC charges · settlement proposed The owner of a business opportunity scheme will be permanently banned from selling business opportunities in settlement of Federal Trade Commission allegations — FTC Obtains Permanent Ban of E-Commerce Business Opportunity Scheme Operator; date from the release’s date line, “July 30, 2025 Tags:”

Cite this action

jesseahawkins.com, “FBA Machine: FTC action that names AI”, AI enforcement record, release read 3 Nov 2026. https://jesseahawkins.com/rules/enforcement/ftc-fba-machine/

Sources

enforcement.csv Every dataset → Status → Glossary →