DENVER — A Colorado-based e-commerce company that promised easy profits for minimal effort has been ordered to shut down and pay at least $200,000 in fines, following a settlement with the Colorado Attorney General’s Office, officials announced Thursday.
Ecom Automation Gurus (EAG), an Aurora-based business led by CEO Kirk Cooper, claimed it could help customers earn thousands of dollars per month by allowing the company to manage online storefronts on platforms like Amazon, Walmart, and Shopify. But according to Attorney General Phil Weiser, the company used deceptive marketing tactics, violated online marketplace policies, and left many customers with lost investments and shuttered accounts.
“Online schemes like this are unfortunately common,” said Weiser in a statement. “If you see a service or company promising big money quickly through little or no effort, that is a major red flag.”
Misleading Claims and Banned Practices
As per the settlement agreement, EAG misrepresented its profit potential via its website, sales presentations, and podcast appearances. The company led potential clients to believe they could earn substantial passive income, but in truth, most ended up losing their initial investments.
Investigators also discovered that EAG breached the terms of service for Amazon, Walmart, and Shopify by operating storefronts in ways that resulted in account suspensions and closures. Specifically, EAG endorsed dropshipping, a method where sellers list products they do not stock or ship themselves — despite Amazon’s explicit policies against this under certain circumstances.
To compound the issues, EAG’s customer contracts contained non-disparagement clauses that prohibited clients from leaving negative reviews online, even if they had valid complaints.
Settlement Terms
As part of the legal resolution, EAG and its owner have agreed to:
- Cease all business operations
- Take down all websites, social media, and marketing materials
- Pay a minimum of $200,000 in restitution and penalties
- Face additional penalties of up to $800,000 if they violate the settlement terms
The settlement aims to prevent EAG from continuing to mislead consumers and to deter similar scams in the growing e-commerce management space.
Attorney General Weiser urged Coloradans to be cautious of any business promising fast, effortless income.
“Always research companies vigorously,” Weiser said. “Be skeptical of anyone guaranteeing a big return on your investment or insisting on non-disparagement clauses in their contracts.”
