A Federal Trade Commission lawsuit accuses Ascend Ecom, an e-commerce automation company, of defrauding customers. Ascend, which claimed to offer passive income through Amazon storefronts, allegedly defrauded consumers of over $25 million. The FTC claims Ascend used false marketing and artificial intelligence tools to deceive customers. E-commerce automation companies are increasingly taking advantage of Amazon's third-party marketplace, which hosts millions of merchants and handles over half of all goods sold on the platform. The company is facing two breach of contract lawsuits in California and a separate arbitration action in Florida.
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00:00It's Benzinga, and here's what's on the block.
00:02A Federal Trade Commission lawsuit accuses Ascend Ecom, an e-commerce automation company,
00:08of defrauding customers.
00:10Ascend, which claimed to offer passive income through Amazon's storefronts, allegedly defrauded
00:14consumers of over $25 million.
00:17The FTC claims Ascend used false marketing and artificial intelligence tools to deceive
00:22customers.
00:23E-commerce automation companies are increasingly taking advantage of Amazon's third-party marketplace,
00:28which hosts millions of merchants and handles over half of all goods sold on the platform.
00:33The company is facing two breach-of-contract lawsuits in California and a separate arbitration
00:38action in Florida.
00:39For all things money, visit Benzinga.com.