The Federal Trade Commission (FTC) has reached a settlement with the remaining defendants involved in a business opportunity scheme. The defendants, including Steven J. Mayer and his companies, will surrender cash and property valued in millions to address allegations of misleading consumers with false promises of significant returns through Amazon's and Walmart's online marketplaces. Similar settlements were secured from other defendants earlier this year.
"Sellers of e-commerce business opportunities and investments must follow the law," stated Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. "These defendants took advantage of people looking to provide for their families and obtain financial security. The FTC will take action against those who promise big returns that they can’t back up."
The FTC filed a lawsuit in October 2024, claiming that these companies made false assertions about potential profits from e-commerce stores managed by them on behalf of consumers. They allegedly promised sales exceeding "$100K+ per month" and million-dollar operations, which rarely materialized, leading most consumers to incur significant losses.
The court order prohibits Mayer and Ecom Genie Consulting from engaging in any business opportunity activities or deceiving consumers about goods or services they sell. It includes a monetary judgment nearing $14 million, partially suspended due to their inability to pay the full amount.
Four defendants are required to relinquish interests in Canadian commercial real estate, additional property worth over $300,000, and approximately $1.7 million in cash. Misleading the FTC about financial status would trigger immediate payment of the full monetary judgment.
Another order bans Profitable Automation and Lunar Capital Ventures from participating in business opportunity activities. Profitable Automation is also required to hand over roughly $73,000 in cash.
The FTC approved these final orders with a unanimous vote filed at the U.S. District Court for the Southern District of Florida.
The staff attorneys handling this case are Sara Tonnesen and Molly Rucki from the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission continues its mission to promote competition while protecting consumer rights through education and legal action against deceptive practices.
