What You Need To Know About The Amazon FBA Scam

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Pitches that the promoters of this large get-rich-quick scheme have used.

Amazing Wealth Systems Claim

By using our specialized system, you too will be able earn $5,000 to $10,000 a month by selling products on Amazon, all this while working less than an hour a day.

-Or-

Get started selling goods on Amazon and you can make $5,000 – $10,000 in the next 30 days… even if you have never sold anything online before.

 

That’s two of the pitches that the promoters of this large get-rich-quick scheme have used to lure people into a bogus business opportunity.

Using ads and live seminars in both English and in Spanish.

AWS Seminars

Using ads and live seminars in both English and in Spanish, Amazing Wealth Systems — also known at different points of time as AWS, FBA Stores, and Online Auction Learning Center — has claimed that people who used the company’s “system” would be able to generate thousands of dollars in sales on Amazon.com. Not necessarily so, says the FTC in a lawsuit filed against the company, announced recently. In fact, the defendants do not have anything to do with Amazon.

The FTC is saying that it was actually Amazing Wealth Systems that is making the money — by enrolling people. Additionally, those who followed the system did not make anywhere close to the advertised income or in most cases, any income at all, this according to the FTC’s complaint. And to make a bad situation even worse, the FTC says many people received warnings from Amazon.com or had their Amazon seller accounts suspended because of what the system instructed them to do was actually against Amazon’s policies.

Amazing Wealth Systems has also failed to comply with the FTC’s Business Opportunity Rule. The Rule, among other items, includes these two requirements:

  1. A company that is promoting a business opportunity and making specific earning claims like …Make
    Amazing Wealth Systems has also failed to comply with the FTC’s Business Opportunity Rule.

    FTC Business Opportunity Rule

    $5,000 – $10,000 within the next 30 days…, must have actual proof that people can and are actually making that kind of money, and

  1. The company is required to give prospective buyers a disclosure document that includes certain information about the business. If the business opportunity is promoted in Spanish, the disclosure document must be in Spanish, as well.

Amazon has also filed a separate civil suit recently against the company, saying in its filing that the owners, two brothers named Chris and Adam Bowser, “are con artists who prey on people who are hoping to become successful sellers on Amazon.com.”

The lawsuits are part of Amazon’s more aggressive effort to fend off illegal or bad or practices on its massive website, which includes hundreds of millions of listings. Amazon has already pursued counterfeit product sellers, fake reviewers, and suspected fraudsters on its Kindle Direct Publishing platform. By going after FBA Stores, it could help Amazon show that it’s working to protect small businesses from these practices, too.

These lawsuits, however, also help with highlighting all of the ways that bad actors have been gaming Amazon’s open platforms.

The state of Washington has been especially active in the legal pursuit of Amazing Wealth Systems.

AWS Seminars In Washington State

The state of Washington has been especially active in the legal pursuit of Amazing Wealth Systems. According to the state filing, this scam perpetrated by the Bowser brothers has been operating since 2009. They lure in people by offering free webinars or in-person workshops on how to sell on Amazon. They also routinely use Amazon’s logos in their signs and brochures, the lawsuit states. At these events, they persuade people to pay $1,000 for a three-day workshop.

Then, at these workshops, they then allegedly use very aggressive sales tactics to get people to register for additional coaching or seminars. These programs can cost from $4,000 for the “Wholesale” package, all the way up to $35,000 for the “Diamond Coaching Package.” The program also can include a $20,000 “Master Mentor” program. The state filing claims that these additional support services then aren’t given to the people who paid.

They stated that $12 million of that was earned through Amazon in just one year.

Bowser Brothers

During one of the webinars, the filing said, Chris Bowser claimed he and his brother have made more than $75 million in online sales in 18 years of business. They also stated that $12 million of that was earned through Amazon in just one year. He added that they both have made more than $1 million in sales on Amazon within the last 30 days, again according to the filing.

The problem is that many of the tips the Bowsers offered actually violate Amazon’s terms of service and could possibly result in sellers getting banned, the state lawsuit alleges. For example, the Bowsers told people that they should buy fake reviews to help boost product sales. They also offered to sell customer the inventory to list online, but the products that they provided were repackaged or of poorer quality than advertised. In those types of cases, Amazon could possibly also ban a seller for misidentifying merchandise.

Amazon is alleging that the Bowser brothers committed trademark infringement and false advertising.

Amazon Shipping Box

In its lawsuit, Amazon is alleging that the Bowser brothers committed trademark infringement and false advertising, in addition to other things. The company has requested that they stop using its trademarks and to also pay unspecified damages.

The state complaint is asking the court to order the Bowser brothers to pay restitution to consumers and also impose civil penalties of up to $2,000 for each violation.

The company in a recent statement says that “Amazon has zero tolerance for fraud”. “Amazon is heavily invested in protecting the integrity of the Amazon marketplace for consumers and sellers. Along with other measures, we take independent legal action against the bad actors, and we plan to continue to do so.”

Potential victims of the alleged scam can file a complaint with:

Complaints Can Be Filed With The FTC

Federal Trade Commission

Offices Of The United States Attorney: https://www.justice.gov/usao

FTC : https://www.ftc.gov/

Companies that promote bogus business opportunities will often fail to follow the rules and laws. That is why if you have an interest in a business opportunity, the first thing you should do is to ask for the earnings claim statement and the disclosure documents that are required by law. If they hesitate, simply walk away.

Thank You

Thanks for taking the time to read my post on What You Need To Know About The Amazon FBA Scam. I hope that it has provided the reader with needed information and has been of assistance in some way. If you have Comments or Questions, please leave them below. Also, if you know of any Scams that need to be investigated, feel free to leave the information below and I will be glad to look in to the issue. Take care.

 

 

Best Regards,

Mike

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