Publishing.com Pays $1.5 Million to Settle FTC Charges Over Misleading Income Claims

Publishing.com LLC and its two principals have agreed to pay $1.5 million to settle Federal Trade Commission charges that the company deceived consumers about potential earnings from its self-publishing programs. The settlement addresses three distinct areas of alleged deception: false earnings claims, misleading refund guarantees, and undisclosed relationships in customer testimonials.

The company, led by CEO Christian Mikkelsen and Chief Product Officer Rasmus Mikkelsen, marketed online self-publishing programs that promised substantial passive income through e-books and audiobooks. Their flagship offerings included AI Publishing Academy (AIA), priced at up to $1,995, and a supplementary coaching program called Publishing Accelerator launched in 2022.

According to the FTC complaint, the Mikkelsen brothers claimed consumers could earn between $1,000 and $3,000 monthly in passive income using their systems. These claims were prominently featured in free online videos and personal success stories from the founders. However, the FTC alleges most customers never approached these earnings levels.

The settlement highlights three key areas that have become focal points in recent FTC enforcement actions across various industries. First, the earnings claims lacked reasonable substantiation and failed to reflect typical customer results. Instead, the company allegedly highlighted rare success stories while downplaying or omitting more common outcomes.

Second, Publishing.com advertised a “no questions asked” money-back guarantee that proved illusory in practice. The FTC alleges customers seeking refunds encountered numerous undisclosed conditions buried in fine print or lengthy terms of service documents, making it difficult or impossible to obtain their money back.

The third issue involved testimonials and reviews. The company reportedly used positive consumer testimonials in its marketing materials without disclosing that some were written by company employees or relatives of the Mikkelsens. Other testimonials came from customers who had received incentives such as prizes, cash, or additional services. In some cases, the FTC alleges Publishing.com even conditioned refunds on customers providing positive testimonials.

This case reflects the FTC’s ongoing crackdown on deceptive marketing practices across digital platforms and educational services. While the violations were charged under Section 5 of the FTC Act rather than the more recent Consumer Reviews and Testimonials Rule (which took effect in October 2024), the action signals the agency’s determination to pursue deceptive review practices through multiple regulatory channels.

Industry analysts note that the self-publishing education market has seen explosive growth in recent years, fueled by consumer interest in passive income opportunities during economic uncertainty. This settlement could have ripple effects throughout the industry, as similar business models come under greater scrutiny.

Under the proposed consent order, Publishing.com and the Mikkelsens are prohibited from making earnings claims without adequate substantiation, misrepresenting refund or cancellation terms, and failing to disclose material connections between the company and its endorsers. They must also disclose any payments or incentives provided in exchange for reviews.

The $1.5 million monetary settlement will likely be used to provide refunds to affected consumers, though specific distribution details weren’t immediately available.

Marketing and legal experts emphasize that this case carries implications far beyond the self-publishing industry. Any business using testimonials, earnings claims, or satisfaction guarantees should review their practices carefully. Companies must ensure their earnings claims reflect typical consumer experiences, that refund policies are clearly communicated without hidden obstacles, and that all material connections with endorsers or reviewers are transparently disclosed.

The settlement serves as a stark reminder that the FTC continues to prioritize truth in advertising, particularly when it comes to income opportunities marketed to consumers seeking financial advancement during challenging economic times.