FTC Sues E-Commerce Automation Company Ascend for Scam Defrauding Customers Out of $25 Million

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.