The feds opened an investigation into a side-hustle company helping pump out AI-generated books, records reveal

Public records obtained by B-17 reveal a Federal Trade Commission investigation into Publishing.com, a company that sells courses on creating AI-generated books.

The company, which was reported to have made nearly $50 million in 2022, charges $2,000 to teach customers how to generate books and e-books with help from ghostwriters and artificial-intelligence software. It’s drawn scrutiny for its role in flooding Amazon with AI-generated content and has been the subject of numerous customer complaints alleging high-pressure sales tactics and difficulties getting refunds.

Investigations by the FTC often target companies suspected of duping consumers through deceptive marketing, hidden fees, or unfair refund policies. The agency can negotiate settlements and obtain fines and court orders that force businesses to change their practices or return money to customers.

B-17 learned about the investigation through a public-contracts database that revealed the name of Publishing.com and showed the FTC had hired an expert witness. When B-17 contacted the FTC, it removed the company’s name. A partially redacted scope-of-work statement confirmed the contract was for an investigation, though it offered no details about the investigation itself.

The FTC declined to comment.

When briefed on B-17’s reporting, two former FTC officials said that it was unusual for the FTC to budget tens of thousands of dollars for an expert witness unless the investigation was seen as viable. “They have to have a pretty good idea of what they want and what they want to establish,” one former official said.

In 62 complaints to the agency obtained via the Freedom of Information Act, Publishing.com customers — including some who said they spent over $7,000 on courses and other materials — said the company sold them on the program during high-pressure sales calls, while obscuring how much money it would cost to make money from self-publishing books.

Public records obtained by B-17 reveal a Federal Trade Commission investigation into Publishing.com, a company that sells courses on creating AI-generated books.

The company, which was reported to have made nearly $50 million in 2022, charges $2,000 to teach customers how to generate books and e-books with help from ghostwriters and artificial-intelligence software. It’s drawn scrutiny for its role in flooding Amazon with AI-generated content and has been the subject of numerous customer complaints alleging high-pressure sales tactics and difficulties getting refunds.

Investigations by the FTC often target companies suspected of duping consumers through deceptive marketing, hidden fees, or unfair refund policies. The agency can negotiate settlements and obtain fines and court orders that force businesses to change their practices or return money to customers.

B-17 learned about the investigation through a public-contracts database that revealed the name of Publishing.com and showed the FTC had hired an expert witness. When B-17 contacted the FTC, it removed the company’s name. A partially redacted scope-of-work statement confirmed the contract was for an investigation, though it offered no details about the investigation itself.

The FTC declined to comment.

When briefed on B-17s reporting, two former FTC officials said that it was unusual for the FTC to budget tens of thousands of dollars for an expert witness unless the investigation was seen as viable. “They have to have a pretty good idea of what they want and what they want to establish,” one former official said.

In 62 complaints to the agency obtained via the Freedom of Information Act, Publishing.com customers — including some who said they spent over $7,000 on courses and other materials — said the company sold them on the program during high-pressure sales calls, while obscuring how much money it would cost to make money from self-publishing books.