FTC cracks down on deceptive e-commerce schemes

The Federal Trade Commission (FTC) has reached a settlement with two individuals and their companies who it said misled people with false promises of making big money by selling products on Amazon and Walmart.

Under the settlement, Trevor Duffy Young and Wessam Baiz, along with Baiz’s companies, will pay back hundreds of thousands of dollars made from the alleged scam. The businesses involved used names like Lunar Capital Ventures, Ecom Genie, and Profitable Automation—and were previously known as Valiant Consultants.

According to the FTC, Young and Baiz convinced consumers they could earn large profits by buying into ready-made online stores that would be managed for them. They promised some customers they could make over $100,000 a month and even own a “million-dollar store.” In reality, most people lost tens of thousands of dollars, and the promised profits never materialized.

“Young, Baiz, and their companies took advantage of people who were looking for a way to invest their money,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “This action ensures they’re held accountable and banned from offering business opportunities in the future.”

What the settlement includes

• Young and Baiz are now banned from selling or promoting business opportunities.
• They are also prohibited from making false claims about any products or services they offer in the future.
• Baiz and his companies, Baiz Sales and Salespreneurs, must turn over their remaining assets and bank account funds to the FTC.
• Baiz faces a $13.9 million judgment, which is mostly suspended due to financial inability to pay.
• Young faces a $6 million judgment, also mostly suspended.
• If either man is found to have lied about their finances, they’ll be forced to pay the full amounts immediately.

The FTC first filed the lawsuit in October 2024, and this settlement marks a step forward in protecting consumers from fake online business schemes.