DK Automation

The FTC alleged that DK Automation sold Amazon business packages and a crypto trading bot on promises of passive income on autopilot, suppressed negative reviews, and skipped Business Opportunity Rule disclosures. It turned over $2.6 million.

Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.

Passive income on autopilot

DK Automation and its owners Kevin David Hulse and David Shawn Arnett sold Amazon business packages, business coaching and cryptocurrency services on the promise that buyers could “generate passive income on autopilot.” According to the FTC’s complaint, few ever made money.

The Amazon programs were sold under several names, including AMZDFY, Amazon Done For You and Amazon Done With You, pitched as a “100% turnkey” business selling products on Amazon, and priced as much as $100,000. The crypto offering included a “#1 secret passive income crypto trading bot” the defendants said could “generate profits for you even while you sleep.”

The review manipulation, which is the distinctive part

The FTC alleged the company falsified positive reviews and flagged negative ones so they were removed. It agreed to give refunds on the condition that the customer delete their complaint. It threatened to sue a dissatisfied customer who spoke publicly about his experience, and it added contract language preventing customers from leaving negative reviews.

Where disclaimers accompanied the earnings claims, the complaint says they were in type so small or so far from the claim as to be useless.

The complaint also alleges the defendants continued making deceptive earnings claims after receiving Notices of Penalty Offenses from the FTC about money making opportunities and endorsements, and that they routinely failed to give the disclosures the Business Opportunity Rule requires.

The order

The defendants turned over at least $2.6 million for refunds, under a total monetary judgment of nearly $53 million that was partially suspended for inability to pay, becoming due in full if they lied about their finances. They are barred from unsubstantiated earnings claims, from misleading buyers about the likelihood of profits or whether testimonials are typical, and from restricting a customer’s ability to complain or leave a negative review.

In March 2024 the FTC sent $2.8 million to 890 consumers.

What is not established

The order resolves the allegations without any admission or finding of wrongdoing.

Sources

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