Jamaal Sanford received a threatening email from a purported “Russian shadow team” containing personal information and demanding the removal of a negative online review he left for Ascend Ecom, an e-commerce automation company. The Federal Trade Commission (FTC) has filed a lawsuit against Ascend for deceptive marketing practices and false claims related to earnings. Ascend is accused of defrauding consumers of at least $25 million and threatening customers who post honest reviews. The FTC is cracking down on e-commerce money-making schemes, particularly those promoting passive income opportunities through false claims.
Ascend, founded in 2021, has faced legal action in multiple states for breach of contract and other claims. The company falsely claimed to use artificial intelligence to maximize clients’ business success, and promoted itself as “risk-free” due to a buyback guarantee that failed to materialize gains for consumers. Customers who invested in Ascend’s automation services found their bank accounts depleted and faced hefty credit card bills.
Sanford invested $35,000 in Ascend’s scheme, but never recouped the money and is now in debt. Ascend’s promises of generating revenue through Amazon storefronts proved to be unfulfilled, as the company used dropshipping methods that violated Amazon’s policies, resulting in store suspensions. Basta and Leung, co-founders of Ascend, are accused of defrauding customers through these practices.
Individuals who invested in Ascend’s services have lost substantial amounts of money and have been left in financial distress. The FTC is pursuing legal action against Ascend to seek monetary relief for affected consumers and to prevent the company from doing business in the future. The case highlights the risks associated with e-commerce automation and the importance of regulatory oversight to protect consumers from deceptive practices online.
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