Smart FBA was an Amazon automation service that that offered to build a managed FBA store. However, the company collapsed, leaving investors with massive losses and deactivated stores.

The Fallout: Clients Left in the Dark

By early 2025, SmartFBA had shut down operations entirely. Employees were abruptly fired, the customer portal was taken offline, and CEO Scott Hunt began deflecting blame onto former business partners. Meanwhile, hundreds of investors found themselves out tens of thousands—if not hundreds of thousands—of dollars with no recourse and no way to retrieve their investments.

Reddit forums quickly filled with accounts of devastated investors:

“I’m out over $60K and would definitely join a class action suit.” – Reddit User: Pendragon037
“I talked to my lawyer this past week. He is referring me to a law office in Oregon.” – Reddit User: Loose-Pianist8326
“SmartFBA ran this like a shell game, and now Amazon has flagged my store for investigation.” – Reddit User: exaudi_vocem_meam
“Scott Hunt is a conman. He ran the company into the ground in six months.” – Reddit User: Rude_Replacement9509

The overarching sentiment? Betrayal. Many customers had been assured their stores were being managed professionally, only to discover their inventory consisted of overpriced junk or, in some cases, counterfeit items that got their Amazon accounts suspended.

Legal Action: The Fight for Compensation

With losses ranging from $10,000 to over $100,000 per person, many affected clients have banded together in an attempt to recover funds. Lawyers like Dennis Shaffer, himself a SmartFBA client, have stepped in to coordinate legal action. Multiple investors are pushing for an involuntary bankruptcy filing, which could force SmartFBA to disclose financial records and distribute any remaining assets.

Shaffer has been actively working to help affected clients file complaints and lawsuits, urging those impacted to reach out to him at (410) 752-9752.

But the likelihood of recovering funds is slim. Scott Hunt has claimed he inherited a failing company riddled with hidden debt, yet evidence suggests he continued onboarding new clients while knowing the company was on the brink of collapse. Some suspect SmartFBA was operating as a Ponzi scheme, using new investors’ funds to pay off previous ones while siphoning money into personal accounts.

Take Control: How to Build a Profitable Amazon Business Yourself

Instead of relying on a managed service, creating your own FBA business is easier than it seems:

Product Research – Use product research tools like Helium 10 or Jungle Scout to find profitable products.
Sourcing – Work directly with manufacturers to create your own private label product.
Branding & Compliance – Set up your brand registry and ensure compliance with Amazon’s guidelines.
Listing Optimization – Use proper keywords, images, and compelling descriptions.
PPC & Marketing – Run Amazon ads and external traffic strategies to increase sales.

By managing your own store, you retain full control over your profits, inventory, and long-term business success.

Class Action Lawsuits

Many former SmartFBA clients are now pursuing class-action lawsuits against the company. Several Reddit users have confirmed that they are working with lawyers to take legal action:

“We need to form a class action suit. My attorney says that we have an excellent case.” – Reddit User: PotatoNew3349
“Dennis Shaffer is working on getting SmartFBA into bankruptcy court. Contact him if you want to join the lawsuit.” – Reddit User: Live-Particular-3924
“I have spoken with about seven or eight people so far. We need twenty signatures to file against SmartFBA. Reach out ASAP.” – Reddit User: DShafferCounsel

While the odds of recovering funds are uncertain, the legal action aims to expose the company’s financial dealings and hold those responsible accountable. Investors are advised to document all transactions, reach out to attorneys, and report SmartFBA to the FTC and Better Business Bureau.

If you were affected by SmartFBA, legal experts recommend:

Document everything (emails, invoices, transactions, agreements)
File complaints with the FTC and BBB
Join class-action efforts if applicable
Avoid further financial losses by cutting ties completely

The SmartFBA saga isn’t just a business failure—it’s a full-fledged financial disaster for its clients. Let this serve as a warning: when something sounds too good to be true in e-commerce, it usually is.