Federal Trade Commission v. Ascend Capventures Inc., 2:24-cv-07660

Background

The FTC sued Ascend Capventures, Ascend Ecommerce, Ascend Administration, Ascend Ecom LLC, Ascend Distribution LLC, and individuals William Basta and Jeremy Leung under Sections 13(b) and 19 of the FTC Act, the Business Opportunity Rule, and the Consumer Review Fairness Act, alleging deceptive and unfair marketing of online e‑commerce business opportunities and business coaching programs.
The Complaint alleged Defendants took at least $25 million from consumers through unlawful practices.
Defendants stipulated (without admitting liability) to an agreed permanent injunction and monetary judgment to resolve the dispute; both sides waived appeals/challenges to the Order.
The Court entered the stipulated Order: permanent ban on offering/assisting in Business Opportunities and Business Coaching Programs; specific prohibitions on earnings and other material misrepresentations; prohibition on contract provisions that suppress consumer reviews.
A $25,000,000 joint and several monetary judgment was entered against the Defendants, with substantial asset transfers to a court‑appointed Receiver and to the FTC, and a partial suspension of the judgment contingent on the truthfulness and completeness of Defendants’ financial disclosures.
The Order imposes a receivership, detailed asset turnover and liquidations (including specified bank/crypto accounts and real properties), customer‑data protections, recordkeeping, compliance reporting, monitoring powers for the FTC, and retention of jurisdiction by the Court.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether permanent injunction and business‑opportunity/business‑coaching ban required to stop unlawful practices	FTC: injunction needed to prevent continued deceptive business‑opportunity and business‑coaching marketing	Defendants: stipulated resolution (neither admitting nor denying liability)	Court entered stipulated permanent injunction prohibiting offering/assisting in Business Opportunities and Business Coaching Programs
Whether defendants must be barred from making Earnings Claims or AI profitability claims without substantiation	FTC: earnings and AI profitability claims were deceptive; require substantiation and disclosure	Defendants: agreed to stipulation limiting such claims	Court enjoined Earnings Claims unless non‑misleading, reasonably substantiated, and accompanied by written substantiation available to consumers and FTC; barred AI performance misrepresentations
Whether contract provisions may lawfully suppress consumer reviews	FTC: nondisparagement / gag/assignment clauses unlawfully suppress Covered Communications	Defendants: agreed to stipulation prohibiting such clauses	Court prohibited offering, enforcing, or asserting any Prohibited Contract Provision that restricts or penalizes Covered Communications
Monetary relief, asset turnover, receivership, and conditional suspension of judgment	FTC: $25M consumer injury; immediate turnover of specified assets/accounts and real properties; receivership and monitoring required	Defendants: agreed to liquidate/surrender assets and accept $25M judgment with partial suspension contingent on accurate financial disclosures	Court entered $25M joint & several judgment, ordered specified asset transfers and liquidations, froze/transferred listed accounts to FTC/Receiver, imposed receivership, and suspended remainder of judgment contingent on truthful financial representations; suspension to be lifted upon material misstatements or non‑disclosure

Key Cases Cited

None cited (the stipulated Order as entered does not rely on or quote any reported judicial opinions).