Bonus 08: The $1.5M Warning - What the FTC's Publishing.com Fine Means for Indie Authors

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Episode Summary

On April 13, 2026, the Federal Trade Commission announced that Publishing.com and its co-founders Christian and Rasmus Mikkelsen agreed to pay $1.5 million to settle charges that they misled consumers about how much money they could earn using the company's self-publishing programs. In this bonus episode, KB breaks down the three specific violations the FTC identified, what the consent order requires going forward, and gives you a practical compliance checklist so your own marketing stays on the right side of the law.

This one matters whether or not you sell courses. The same rules that caught a fifty million dollar course company apply to your book descriptions, your newsletter, your affiliate links, and the reviews you ask for.

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Key Topics Covered

The Publishing.com Case

• Formerly known as PublishingLife.com, operating since 2018

• Two primary products: AI Publishing Academy ($1,995) and Publishing Accelerator ($9,800)

• Reportedly generated nearly $50 million in revenue in 2022

• Marketed as a "foolproof, passive income system" for ebooks and audiobooks

Violation 1: False and Unsubstantiated Earnings Claims

• Promised consumers could earn "$1k to $3k a month in passive income"

• The CEO displayed bank balance receipts in promotional videos

• Most consumers never achieved the advertised earnings, and many made no profit at all

• Hidden costs contradicted the "little or no startup cost" claims

Violation 2: Deceptive Refund Guarantees

• Advertised a "no questions asked" 12-month money-back guarantee

• The actual refund process involved conditions buried in the terms of service

• Those conditions made it difficult or impossible for consumers to get their money back

Violation 3: Fake and Undisclosed Testimonials

• Reviews written by employees and relatives with no disclosure

• Positive testimonials incentivized through prizes, cash, and services

• Refunds allegedly conditioned on consumers providing positive reviews

What the Consent Order Requires

• A permanent prohibition on unsubstantiated earnings claims

• Written documentation proving claims are typical for similarly situated consumers

• Full disclosure of material connections with endorsers and reviewers

• Refund policies that match what was advertised

• A $1.5 million monetary payment

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Action Steps: Your Compliance Checklist

1. Never make income claims you cannot substantiate with documentation.

2. Disclose affiliate relationships clearly and close to the link, not buried in a footer.

3. Keep testimonials honest, and disclose any material connection with the person giving them.

4. Honor your refund policy exactly as advertised, with no hidden conditions.

5. Document everything, so if you are ever asked to substantiate a claim, you can.

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Sources and Further Reading

• FTC Press Release: Publishing.com to Pay $1.5 Million

• FTC Complaint (PDF)

• FTC Decision and Order (PDF)

• FTC Endorsement Guides: What People Are Asking

• 16 CFR Part 255: Endorsements and Testimonials in Advertising

• Business Insider: FTC Investigation Into Publishing.com

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I hope this helps you go from posts, to profits! See you in the next one.