Promises of ‘passive income’ through vending on Amazon’s e-commerce platform have led to alarmingly aggressive responses, from verbal threats to unsettling death threats, specifically directed at individuals who have posted negative online reviews, the Federal Trade Commission (FTC) has reported.
Online selling platforms like Amazon have undeniably revolutionized the face of commerce, offering unprecedented opportunities for anyone with internet access to start a small business. Encapsulated in the promise of passive income, these opportunities can seem accessible and relatively stress-free, but critics argue that this is hardly the reality for many Amazon sellers.
Promotional rhetoric around passive income has fueled the proliferation of online coaching and consulting services, many of which promise to help novice entrepreneurs establish successful businesses on Amazon. A significant investment in their services is often solicited with the tantalizing promise of achieving consistent, substantial income with little to no effort.
However, according to FTC investigations, not only are the promises of uncomplicated passive income far from the truth for many, but the very act of questioning the validity of these promises or advertising a negative online review has seen a steep rise in aggressive responses. This trend culminated recently in what the FTC reported as death threats being made against individuals who have publicly criticized such coaching programs or shared their negative experiences online.
From an FTC perspective, this is a serious and clear violation of consumer protection law, which demands that businesses are honest, transparent, and respectful of their customers’ rights to express opinions and share experiences, even if these are questioning or negative. The agency also noted that eliciting immediate and drastic consumer response over negative reviews indicates the extreme pressure on entrepreneurs to maintain unrealistic expectations of success and income within the unforgiving Amazon marketplace.
The investigation also spurred a dialogue about the broader issues of transparency and accountability within Amazon’s e-commerce ecosystem. For many critics, the death threats are symptomatic of an industry disproportionately skewed towards consultant firms and potentially deceptive schemes. Amazon, for its part, maintains that it operates in full compliance with all appropriate regulations but acknowledges the need for ongoing efforts to manage and regulate the behavior of participants in its marketplace.
While the convenience and accessibility of digital marketplaces have undeniably democratized business, the FTC warns of the darker side of these platforms. Promises of passive income can lure entrepreneurs into a potentially volatile business environment where success is hard-earned rather than given. More distressingly, the threats cast against those sharing negative reviews indicate the severe consequences that may arise from voicing criticism in
