The Federal Trade Commission is cracking down on "automation" companies that launch and manage online businesses on behalf of customers in exchange for an upfront investment.
"Do not play tough guy," the email said. "You have nothing to gain by keeping the reviews and EVERYTHING to lose by not cooperating." His experience is a key piece of the FTC's suit, which accuses Ascend of breaking federal laws by making false claims related to earnings and business performance, and threatening or penalizing customers for posting honest reviews, among other violations. The FTC is seeking monetary relief for Ascend customers and to prevent Ascend from doing business permanently.against companies that use artificial intelligence "as a way to supercharge deceptive or unfair conduct that harms consumers.
Lina Khan, Chair of the Federal Trade Commission , testifies before the House Appropriations Subcommittee at the Rayburn House Office Building on May 15, 2024 in Washington, DC.The filing shows that the threats against Sanford grew more menacing. Two days after the initial email, Sanford's wife's phone lit up with a text message containing an image of a severed head that again urged the removal of the unflattering review.
"We are investigating whether a competitor of Ascend may be the driving force behind some of the allegations in the case," Kronenberger said.and other platforms. The company said it had developed proprietary artificial intelligence tools that it used to identify top-selling products. To add an air of legitimacy, Ascend falsely claimed it had been featured in media outlets like Forbes, Yahoo! Finance and Business Insider, the FTC said. It primarily advertised its business on social media platforms TikTok, X, YouTube and Instagram.