FTC Targets ‘Passive Income’ Promises as Publishing.com Agrees to $1.5 Million Settlement

Key Takeaways

• Settlement Over Earnings Claims: Publishing.com will pay $1.5 million to resolve FTC allegations that it overstated how much consumers could earn from its programs.
• Evidence Required Going Forward: The company must back up any future income claims with reliable substantiation.
• Transparency on Testimonials: Incentivized reviews and connections to the company must now be clearly disclosed.
• Refund Practices Challenged: The FTC alleges refund guarantees were undermined by hidden conditions.

Deep Dive

Publishing.com has agreed to pay $1.5 million to settle allegations brought by the Federal Trade Commission that it misled consumers about how much money they could earn through its online self-publishing programs.

The case puts a spotlight on a fast-growing corner of the digital economy, where online courses and coaching services promise scalable income streams through e-books and audiobooks. According to the FTC, Publishing.com’s marketing leaned heavily on those promises, presenting its programs as a repeatable system for generating monthly passive income.

At the center of the complaint are claims that consumers could replicate the success of the company’s founders and students, with some marketing materials pointing to earnings of $1,000 to $3,000 per month. The company’s core offerings, including its AI Publishing Academy course and the higher-tier Publishing Accelerator program, were positioned as the tools to get there.

But regulators say those outcomes were not typical.

Most consumers who purchased the programs did not achieve the advertised earnings, according to the FTC. And while success stories were prominently featured in promotional content, the agency alleges that the broader reality for most users was not clearly conveyed.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized that consumers need accurate, upfront information to make informed decisions about how to invest their time and money.

The FTC’s case also digs into how Publishing.com handled refunds. The company advertised a “no questions asked” guarantee, but the complaint alleges that customers often ran into additional requirements buried in terms and conditions. In practice, those conditions made it difficult—sometimes impossible—for consumers to get their money back.

That tension between headline promises and fine print is a recurring theme in enforcement actions tied to online services.

The Credibility Problem Behind Testimonials

Another focal point for regulators was how the company used testimonials.

Publishing.com frequently highlighted positive reviews to promote its programs. According to the FTC, however, some of those endorsements came from individuals with connections to the company, including employees and relatives of its executives. Others were incentivized with cash, prizes, or additional services.

Those relationships were not always disclosed, the agency alleges.

In some instances, the complaint states that consumers were required to provide positive testimonials as a condition for receiving refunds.

New Rules For How The Company Markets Itself

Under the proposed order, Publishing.com and its executives face a set of restrictions that go to the core of how these programs are sold.

They can no longer make earnings claims unless those claims are supported by a reasonable basis and are not misleading. They are also barred from misrepresenting material aspects of their services, including refund policies and endorsements.

Going forward, the company must clearly disclose any material connections behind reviews and whether testimonials are incentivized. Refund and cancellation terms must also be presented transparently and honored as advertised.

The case falls within a broader enforcement push tied to the FTC’s Joint Labor Task Force, launched in 2025 to address deceptive and unfair practices affecting workers.

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