FOLLOW US

New Jersey, July 31, 2025 — A network of New Jersey-based e-commerce coaching firms has agreed to pay more than $15 million to resolve a Federal Trade Commission (FTC) lawsuit accusing the companies of misleading consumers through false promises of AI-driven success on e-commerce platforms. The settlement comes after the FTC alleged that these firms duped consumers out of nearly $16 million with deceptive claims related to artificial intelligence technology.

Owned by Bratislav Rozenfeld, the defendant companies are permanently barred from promoting or selling any business opportunity as part of the court order filed Wednesday. The settlement also prohibits the use of contract provisions that restrict or penalize consumers for leaving negative reviews, protecting consumer rights under the Consumer Review Fairness Act. The FTC found that the defendants employed non-disparagement clauses and threatened legal action to silence dissatisfied customers.

In addition to the monetary settlement, the defendants must relinquish assets held in frozen bank and investment accounts, along with proceeds from a Florida property sale owned by Rozenfeld. Under the terms of the agreement, the companies and Rozenfeld are required to submit annual compliance reports for 20 years, maintain detailed records of customer communications, advertising materials, and complaints, and cooperate fully with ongoing FTC monitoring efforts.

This case is part of the FTC’s broader Operation AI Comply initiative, launched in September to target deceptive and harmful uses of artificial intelligence in the marketplace. The campaign focuses on protecting consumers from fraud, misinformation, and exaggerated claims regarding AI-powered products and services.

Representatives for the defendant companies declined to comment.