A company called Publishing.com spent years telling people they could build passive income by publishing AI-generated e-books and audiobooks online. The company's two programs - AI Publishing Academy (APA) and Publishing Accelerator - cost up to $1,995. The pitch was simple: copy their system, make $1,000 to $3,000 a month, mostly on autopilot.
Yesterday, the Federal Trade Commission announced Publishing.com agreed to pay $1.5 million to settle charges that those earnings claims were false.
The case closed April 13, 2026. And it may be the clearest warning yet about a category of "AI business opportunity" products that has exploded in the last three years.
What the FTC Actually Found
Publishing.com sold what it called a "foolproof, passive income system." Christian Mikkelsen, the company's CEO, told potential customers in promotional emails that they could "copy the EXACT system hundreds of my students use to make $1k to $3k a month in passive income."
The FTC's complaint says most buyers never came close to that.
Beyond the earnings claims, three other practices landed the company in trouble:
The "no questions asked" guarantee was a lie. Publishing.com advertised a simple refund policy. The FTC says the actual terms were buried in fine print - full of conditions that made it nearly impossible to collect.
The testimonials were staged. The company featured glowing reviews and success stories in its marketing. The FTC alleges many of them came from company employees, relatives of the founders, or customers who were offered prizes, cash, or free services in exchange for positive reviews. Some customers were told to post a testimonial before they could get their refund.
The "students" were not typical. The success stories highlighted in ads represented a small slice of buyers who earned anything close to what was promised. The majority did not.
Under the settlement, Publishing.com and its principals are permanently banned from making earnings claims they cannot substantiate and must disclose any material connections when publishing reviews or testimonials.
Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said it plainly: "Consumers, including workers, need accurate information up front about potential earnings to make an informed decision about how to invest their time, money, and efforts."
What This Has to Do with You
Even if you have never heard of Publishing.com, you have almost certainly seen the category. These programs go by different names: AI income systems, digital product academies, automated business courses, online publishing accelerators. Some are sold as coaching, some as software, some as community memberships.
The format is consistent: a well-produced ad or video featuring someone living their best life, a promise of income achievable without a traditional job, a course that costs somewhere between $500 and $5,000, and a refund policy that looks generous until you try to use it.
The FTC's enforcement here draws a clean line between three things that are legal and one thing that is not:
- Selling a course about how to make money: legal.
- Saying results are not typical: helpful but not enough.
- Making specific earnings claims ($1k to $3k a month): legal only if you can prove those results are achievable by typical buyers.
- Making earnings claims you cannot substantiate: not legal.
The "AI" angle is important here. As AI tools make it easier and cheaper to produce digital content, the number of programs promising passive income from AI-generated books, courses, articles, and videos has multiplied. The FTC is watching this space.
The Red Flags to Know Before You Buy
If you are evaluating any business opportunity program - AI-powered or otherwise - the FTC's case against Publishing.com is essentially a checklist of what to look for:
Ask for a disclosure, not just a testimonial. Any business selling a program must be able to show you real data about what typical buyers earn. Not the top 1%. Typical buyers.
Test the refund policy before you buy. Ask the company to email you the full refund terms. If they point you to a URL or say "it's in the terms of service," read it first.
Look up who is writing the reviews. If the reviews are on the company's own platform, they are unverified. Check the FTC Business Blog (business.ftc.gov) for guidance on spotting fake or incentivized reviews.
Run the math on passive income claims. If someone says you can earn $2,000 a month publishing AI books, ask: how many books? What royalty rate? What does the typical book earn on Amazon in month three? Vague answers are a warning sign.
The FTC will publish the full consent agreement in the Federal Register for a 30-day public comment period. The settlement carries the force of law - any future violation by Publishing.com could result in a civil penalty of up to $53,088 per violation.