Prominent amongst the various business models that thrive on the internet, one that has gained serious momentum in recent years is the promotion of making ‘passive income’ on Amazon. Promising attractive returns on investment, these business models claim to set up aspiring entrepreneurs for financial independence with minimal effort. However, this alluring vision of easy wealth can quickly turn murky as the U.S. Federal Trade Commission (FTC) has recently revealed that death threats have been made in response to negative online reviews of such programs.
Based on the FTC’s investigation, the competitive world of Amazon resale businesses became a manifold threat to both the financial security of individuals and their personal safety. The core of the controversy lies in the hyper-competitive nature of Amazon-based businesses, which often demands large initial investments and consistent high-quality product supply. These prerequisites are sometimes impossible to meet, leading to unfulfilled promises and unmet expectations.
The passive income programs, as per FTC investigations, involve the sale of training programs and services that allegedly teach buyers how to establish successful product resale businesses on Amazon. Many of these programs pledge that enrollees could earn thousands of dollars a month and become millionaires within a year. As attractive as these claims may seem, they often fail to deliver on their promises, leading to frustrated consumers who, in their dissatisfaction, post negative online reviews.
Painting a worrying picture, the FTC says that some negative reviewers have been met with threats of violence, including death threats, and lawsuits claiming millions of dollars in damages. This retaliation by the promoters of these programs only serves to further distress already frustrated consumers and paints a bleak picture of the supposed ‘passive income’ marketplace.
Shining a light on one notable case in the FTC’s complaint details a program referred to as ‘Fulfillment by Amazon.’ This program is represented as a passive income opportunity where participants can earn money by purchasing discounted products from retailers and reselling them on Amazon. For the promised successful outcome, the program charges participants high upfront costs for education and guidance. However, many complainants found that they lost huge sums of money as they realized that the income they were making was not covering the costs of their investments.
The FTC’s investigations highlight that individuals interested in such opportunities should approach with caution and conduct due diligence. The allure of easy money makes these programs attractive, but the potential loss of financial resources and the dangerous backlash faced over negative reviews should be a strong deterrent. It underscores the importance of a vigilant approach when engaging with seemingly lucrative but potentially misleading passive income opportunities such as those purported by some Amazon reselling programs.
The FTC makes it clear that businesses cannot prevent or retaliate against consumers for expressing their opinions or experiences. Such behavior, especially involving severe threats, is not only unethical but also illegal. It’s a clear indication that efforts to silence online reviews, especially negative ones, undermine the freedom of speech and harm the integrity of consumer rights and online review systems.
The report on this issue by the FTC significantly adds to the conversation about the authenticity and reliability of passive income programs. It underscores the influence that online reviews can carry, the lengths that some companies go to protect their reputation, and the role that rigorous regulatory bodies like the FTC play in protecting consumers against predatory behavior on the internet.
