Is Amazon Automation Illegal? | Here’s What the Federal Trade Commission Says

August 14, 2023

Is Amazon automation illegal? Amazon automation itself definitely is not illegal, but some of the shady tactics that Amazon automation companies use to attract customers are. In fact, the United States Federal Trade Commission has previously found a company liable for up to $53 million in an Amazon automation lawsuit for deceiving customers with promises of high profits that never materialized for most. Companies that offer Amazon automation services often require investors to pay tens of thousands of dollars for an automation store. They take part in the profits from the store as well, without risking anything themselves, and they don't always meet the expectations they set. This has led many to wonder whether Amazon automation is legit or just another internet scam. 

Fortunately, there are legit ways to own an Amazon automation store. If you can't find a trustworthy Amazon automation company to operate an Amazon store for you, you can implement other tactics to generate passive income from Amazon, like using automation tools or outsourcing tasks to trained employees. Approximately 75% of Amazon sellers are already using Ecommerce automation tools like InventoryLab for inventory management, according to Amazon. Amazon automation is legal and Amazon encourages it if it makes your business more efficient. 

Is Amazon automation illegal?

Amazon automation is not illegal. Companies are legally allowed to operate Amazon automation services. However, some aspects of Amazon automation services could and have been deemed illegal by the United States Federal Trade Commission. According to Section 5 of the Federal Trade Act, consumers should be treated fairly and not deceived or put at risk by a business. According to the FTC, an act is considered deceptive, where:

  • “A representation, omission, or practice misleads or is likely to mislead the consumer”
  • “A consumer’s interpretation of the representation, omission, or practice is considered reasonable under circumstances,” and
  • “The misleading representation, omission, or practice is material,” meaning that it is relevant and significant in the case

Many Amazon automation services, such as DK Automation (also sold as AMZ Autopilot or AMZDFY) by Kevin David Hulse, have promised customers 6-figures and passive income within a relatively short period time, typically less than a year. These kinds of sales tactics that exaggerate profit potential and timeframe are where Amazon automation services tend to cross the line and become illegal.

Realistically, generating a consistent 6-figure/year with an Amazon business takes at least a couple of years to set up. This is if you’re lucky and find a few solid products for your business. Guaranteeing high profits without backing up the claims can be considered misleading, especially if the Amazon automation service uses the past Amazon business success of the owners as social proof to persuade customers to invest into their Amazon automation service. In fact, there is an Amazon automation lawsuit by the FTC to punish and stop these deceptive tactics. 

What does illegal mean? 

Illegal means performing an act that goes against a predefined law. Doing something illegal means you commit a crime or misdemeanor and can be charged with punishments ranging from fines to jail time. In the United States, the legislative brand, known as Congress, is the entity that creates new laws and updates existing laws, while the executive branch enforces the law and the judicial brand interprets the law.

What makes something illegal?

Typically, the presence of harm makes something illegal. Laws are created to protect against harm and ensure citizens have rights to be treated fairly. Although there are many things that cause harm that aren’t considered an illegal activity, such as infidelity, protection against harm is a key driver of the creation of laws. For example, physical assault is illegal because it causes harm to the body, while crimes like stealing and scamming are illegal because they cause harm to the property that someone owns.

What is Amazon automation?

To understand Amazon automation, you must first know Ecommerce automation. Ecommerce automation is using softwares and services to automate specific tasks and processes of Ecommerce businesses, like Walmart or Shopify stores, to improve efficiency. Amazon automation has a similar definition, it’s just specific to Amazon. Amazon automation is making use of technologies, processes, and people to automatically operate an Amazon business. The goal of Amazon automation is to generate passive income for the online store owner.

Examples of automation at Amazon include:

  • Amazon automation services - These are companies that operate an Amazon business on behalf of a business owner or investor. 
  • Amazon automation tools - This is software used to automate repetitive task requirements, such as using Jungle Scout for automating customer review requests or using Keepa to automatically keep track of product prices on Amazon. 
  • Amazon FBA - Fulfilment by Amazon is a service that Amazon offers directly to third party sellers to handle order fulfillment tasks like inventory storage, shipping, customer service, and returns processing. 
  • Virtual assistant automation - VA automation entails hiring and training a virtual assistant to perform repetitive tasks like Amazon product research or adding product inventory.

Amazon automation can also refer to Amazon the company automating its own tasks. Yes, Amazon does have automation. The company uses technologies like artificial intelligence and robotics to automate tasks across its entire business, from Amazon Web Services (AWS) to operations in Amazon’s approximately 185 fulfillment centers. That's right, Amazon FBA is automated. Although Amazon still uses approximately 1.5 million employees in its warehouse operations, according to the New York Times, many of the company's processes have been automated to improve efficiency for customers and third party sellers using the FBA service. 

Amazon started using automation in 2012 when it first incorporated robotics into its fulfillment facilities, according to Technology Magazine. Amazon uses automation to make its operations more efficient than they otherwise would be, cutting down on labor costs and optimizing output capability and speed.

What is Amazon automation store?

An Amazon automation store is an Amazon store that is completely automated to generate passive income for the store owner. Typically, an Amazon automation store is operated by an Amazon automation agency, such as PushAMZ. 

What are Amazon automation companies?

Amazon automation companies are companies that offer Amazon automation services to operate Amazon businesses on behalf of third party sellers. Amazon automation companies require you to pay between $10,000 to $30,000+ to run an Amazon business for you. Usually, they also require you to provide your credit card in order to purchase product inventory and take up to 50% of the profits that your business generates as their cut, on top of the fees you already paid them. 

What is Amazon automation investment?

An Amazon automation investment is an Amazon business that generates income without the store owner managing the business. Amazon automation investments can be obtained through Amazon automation service companies like Elite Automation by Katie Melissa.

What is the Amazon automation lawsuit?

The Amazon automation lawsuit is a complaint from United States FTC filed against Kevin David Hulse and David Shawn Arnett, owners of DK Automation, in the U.S. District Court for the Southern District of Florida. The FTC took action against DK Automation for deceiving customers with promises of big returns on cryptocurrency trading bots and Amazon automation investment schemes. They promised to generate passive income on autopilot, when in reality most of their customers lost money from the schemes. They also used fake customer reviews where customers were touting huge profits in their marketing pitches. 

The FTC’s complaint alleged that Kevin David Hulse and David Shawn Arnett caused their customers’ harm by: 

  1. Deceiving them about their earnings potential
  2. Failing to provide required disclosures
  3. Suppressing negative reviews and threatening to sue customers who spoke out

As a result, the duo agreed to provide at least $2.6 million to the FTC to be used for customer refunds. However, the total monetary judgement of the punishment was upwards of $53 million, which was partially suspended due to the defendants' ability to pay. If the FTC finds that Kevin Hulse and David Arnett have lied about their financial situation, they will be required to immediately pay the FTC the $53 million.

Are Amazon automation stores a scam? 

Amazon automation stores are not a scam. There are Amazon businesses that are completely automated and capable of generating passive income for the business owner. However, some of the companies that offer Amazon automation services are scams, like the previously mentioned DK Automation. These companies are happy to deceive customers into paying tens of thousands of dollars without producing results, so you need to be careful. You can avoid falling victim to an Amazon automation scam by doing the proper research to find Amazon automation services that have real reviews from actual customers. 

A red flag to look out for is if the automation service is requesting that you sign an NDA. An NDA legally inhibits customers from speaking out against a business. Many Amazon automation services have forced their customers to sign an NDA to protect their reputation if they don’t produce the promised results, according to 7-figure Amazon seller and YouTuber, Fields of Profit. If the Amazon automation service really is confident in their ability to produce passive income for their customer, they should not obligate them to sign an NDA.

Are automated Amazon stores legit?

Automated Amazon stores are legit. There are some companies offering automated Amazon stores, like Elite Automation, that are accredited and have excellent reviews on the Better Business Bureau. However, there are also plenty of automation store services that don’t appear to be that legit, such as PUSH AMZ, which appears high in Google search results for Amazon automation but only has a 2 out of 5 star review on the Better Business Bureau and some concerning reviews. Besides paying for a readymade Amazon automation store from an automation agency, there are also legit ways to set up an Amazon automation store yourself, like by using automation software.

Pros and cons of buying an Amazon automation store


Make money without spending time running the business

If the automation service creates you a private label product, you can sell your business later for a high ROI

Automation services can deal with customer satisfaction for you to build customer loyalty and generate repeat sales 


Automation stores often use the Amazon dropshipping business model, which is against Amazons terms and makes your Amazon account susceptible to suspension

It's a massive investment

The automation company takes some of your profits, so your profit margin is even slimmer than normal

Potential for shady behavior from Amazon automation service like requiring you to sign an NDA or even paying them regardless of the results

Does Amazon automation work?

Amazon automation does work. It is possible to own an Amazon business that generates mostly passive income. Whether you piece together Amazon automation tactics like hiring a VA, incorporating automation tools and running your business through Amazon FBA, or you just find a legitimate Amazon automation service to run the business for you, you can make Amazon automation work. However, it’s important to note that it’s nearly impossible to guarantee that Amazon automation will work for everyone. There are just too many factors at play when operating an Amazon business to guarantee everyone will be successful and own an Amazon automation business.

How to own an Amazon automation store?

  1. 1
    Decide which Amazon automation method you want to use
  2. 2
    Research automation solutions based on your chosen method
  3. 3
    Invest in automation solutions
  4. 4
    Sign up for an Amazon Seller account in Amazon Seller Central
  5. 5
    Implement your chosen automation solutions to operate your business
  6. 6
    Perform periodic assessments of your business's profitability to ensure the automation is working as it should and generating passive income

Best Amazon automation service 

How do you start an Amazon automation business?

  1. 1
    Launch and scale your own Amazon business to at least 7-figures in revenue to learn how to be successful on Amazon and showcase proof of performance
  2. 2
    Set up a legal business entity like an LLC to protect your personal assets from your automation business
  3. 3
    Create a website that showcases your automation service options and set your pricing
  4. 4
    Hire and train an automation team to support you in establishing automation stores for clients
  5. 5
    Offer your first clients a promotional discount price to entice them to work with you, including a money-back guarantee
  6. 6
    Incorporate positive reviews from your first clients into your website after you successfully automate their Amazon businesses and gradually raise your prices
  7. 7
    Continue to improve your services by incorporating new technologies into your business and providing regular trainings for your automation employees

If you're starting your own Amazon automation business to offer automation services to clients, it's essential you become an accomplished Amazon seller first. This helps to ensure you understand what it takes to be successful with Amazon and can provide your clients with the results they are paying for. 

Related Articles on Amazon Automation

  • What Is Amazon Automation - In this Amazon automation review, learn about the basics of Amazon automation, including 5 controversial facts you should know before starting out. 
  • Top Amazon Automation Investment Companies - Discover how to decide which Amazon automation companies are worth it and which offer the best chance of success.
  • Elite Automation Review - Elite Automation by Katie  Melissa offers end-to-end management services for Amazon wholesaling businesses. 


Amazon automation is not illegal. Although some Amazon automation companies have been found to be participating in illegal activities in the past, there are many legit ways to automate an Amazon store. The best ways to automate your Amazon business are by using innovative technologies like artificial intelligence, operating your business through the Amazon FBA program, and hiring and training high-quality virtual assistants in the processes you have established. Although there are probably some authentic Amazon automation services out there that can provide their customers with a positive experience most of the time, it can be quite difficult to identify which ones are scammers and which ones are worth the risk of spending thousands of dollars with. 

Another totally legal yet less risky way to start generating passive income online is with local lead generation. Local lead generation entails building websites that attract customers for service businesses in strategic locations. The goal is to get these websites to rank on the first page of Google, typically within 6 weeks to 6 months, and then partner with a local service business to take the customer leads that the website generates to start earning passive income. Each local lead generation website can generate between $500 to $3,000/month, so you can scale to a 6-figure business with just a handful of these websites. We have a lead gen course with over 7,000 students if you’re serious about making a high-income online but want to avoid the risk of choosing the wrong Amazon automation company. 

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  1. We tried Amazon automation it failed miserably for us we have $2,500 worth of credits with an automation company from returns that they've received back from the sales we paid the automation company for but they're not giving us back our money does Amazon care about this and how do we let them know so they can help us recoup our money. Our storefront has been deactivated and we do not wish to reactivate it and it's almost impossible to make contact with Amazon

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