Nebraska AG sues influencers over 'E-Commerce Automation' schemes

LINCOLN, Neb. – Nebraska Attorney General Mike Hilgers has filed a lawsuit against local social media influencer Elizabeth “Liz” Friesen and Florida-based company WiFi Money, along with other associated individuals and entities, accusing them of running misleading “passive income” schemes that resulted in millions of dollars in losses for Nebraska consumers.

The suit aims to recover funds lost by Nebraskans and halt deceptive business practices allegedly perpetrated by the defendants.

According to the lawsuit, Friesen and her associates marketed “automated” e-commerce stores managed by “dropshipping experts” on Amazon and Walmart.com, luring consumers with promises of easy income and money-back guarantees. However, the complaint alleges that these stores frequently violated Amazon and Walmart policies, leading to account suspensions and significant financial losses for those who invested. The defendants are accused of using deceptive marketing tactics to continue recruiting participants, while allegedly spending consumers' funds on luxury items, including cars, mansions, and vacations.

Attorney General Hilgers described the schemes as highly deceptive, saying the defendants promoted unsustainable lifestyles on social media to attract consumers into investments with no real chance of success.

The lawsuit, filed in Lancaster County District Court, claims violations of Nebraska's Consumer Protection Act and Uniform Deceptive Trade Practices Act, among others.

The Attorney General’s Office seeks refunds for affected consumers, a court order to halt these schemes, reimbursement for state legal fees, and civil penalties. Consumers affected can contact the Attorney General’s Office for more information.