FTC fines Publishing.com $1.5 million for misleading earnings claims

The FTC just slapped Publishing.com with a $1.5 million penalty. The final order, approved by the Commission in July 2026, targets the company’s self publishing programs and the earnings promises that powered its marketing, naming CEO Christian Mikkelsen and Chief Product Officer Rasmus Mikkelsen as the principals responsible for the conduct.

The commission’s complaint, first disclosed in April 2026, alleges that Publishing.com claimed its products would help consumers earn substantial income publishing ebooks and audiobooks online. It also contends that the Mikkelsens personally touted the system as a path to significant wealth. Yet the FTC argued that the vast majority of buyers did not achieve the income the advertising suggested, and that refunds were often blocked by conditions buried in fine print or lengthy terms of service. The agency highlighted that some customers were steered toward decisions with limited or no recourse when they sought returns.

The complaint also accused Publishing.com of deceptive testimonial practices. It said reviews posted on the company’s sites sometimes came from company employees or relatives of the founders, and that the firm offered incentives to generate positive testimonials. In addition, the FTC pointed to disclosures that did not clearly reveal these relationships, potentially misleading consumers about the independence or reliability of the endorsements.

Under the final order, Publishing.com and the Mikkelsens are barred from making earnings claims unless those claims are not misleading and have a reasonable basis to support them. The order also prohibits the specific misrepresentations laid out in the complaint, as well as similar misstatements about earnings. In a clear signal to marketers, the commission requires that any earnings claims be supported by substantiation that genuinely reflects typical results. The company is further barred from publishing testimonials that are not properly disclosed as advertising or from offering incentives to obtain favorable endorsements without disclosing the relationship.

The monetary remedy is immediate and personal. Publishing.com LLC and the two principals will jointly pay $1.5 million as part of the settlement. While the press release does not spell out every enforcement mechanism, the order is enforceable by the FTC, and the agency is expected to monitor compliance and pursue remedies if the terms are violated. The decision also serves as a warning to operators in the self publishing ecosystem that earnings marketing tactics will attract high level regulatory scrutiny and that inaccurate promises can trigger substantial penalties.

For compliance leaders in the space, two practical takeaways stand out. First, earnings claims must be anchored in credible, verifiable data and tied to a realistic, well documented basis; vague or inflated promises invite swift regulatory action. Second, testimonials require discipline: disclose any material connections, avoid incentivizing positive reviews, and ensure reviews accurately reflect typical experiences without cherry picking outliers. Lastly, firms should simplify refund policies and ensure customers can navigate returns without hidden hurdles, so that goodwill and lawful practices do not collide with aggressive marketing tactics.

As the self publishing market grows, this ruling signals that the FTC will scrutinize how programs promise income, who is making those claims, and how consumer endorsements are obtained and presented. The Publishing.com case offers a concrete reminder to tighten claims, disclosures, and consumer protections across marketing and testimonials, or risk a price tag that dwarfs the original sales pitch.