FTC lawsuit reveals how subscription scam networks evade app store enforcement

The U.S. Federal Trade Commission (FTC) has launched a significant lawsuit aimed at exposing the complex web of subscription scams infiltrating app stores. The legal action targets Genesis Tech, a company accused of defrauding consumers by using a network of shell companies to obscure its identity and divert profits overseas. According to the FTC, Genesis Tech operated a range of subsidiaries incorporated in Cyprus and functioning in Ukraine while marketing various apps to American users. Among its offerings were popular fitness and nutrition apps like MadMuscles, Harna, and Unimeal, alongside PDF tools such as PDF Guru and PDF Master. Other products included the fashion app Lumi, the horoscope app Nebula, and several personal productivity applications branded under Wisey. The lawsuit claims that between early 2023 and mid-2025, these companies collectively generated nearly $250 million in global revenue. Additionally, transactions linked to their PayPal accounts reached nearly $700 million within a year leading up to September 2025. This case underscores the increasing difficulty faced by tech giants Apple and Google in policing app stores as subscription scams evolve into intricate networks. The FTC alleges that Genesis Tech employed tactics such as registering new corporate entities and opening multiple merchant accounts to evade detection by fraud monitoring systems. By continuously creating new accounts, the company managed to avoid scrutiny for an extended period. Genesis Tech's subscription models were reportedly designed to entice users with free or low-cost offers, but once enrolled, consumers encountered auto-renewing subscriptions that were difficult to cancel. The company allegedly added charges for additional products without user consent and sometimes even double-charged customers. To complicate matters further, cancellation options were often missing from their websites and apps, leading to unauthorized continued billing, according to the FTC. The practices employed by Genesis Tech are said to breach the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). Co-defendants in the case include several individuals linked to the company, with the proceedings set to unfold in the U.S. District Court for the Northern District of California. Efforts to get a response from Genesis Tech through its publicly listed contact information yielded no immediate comment. This lawsuit is part of a wider trend, as the FTC has previously taken legal action against various mobile app developers, including well-known names in the industry. The ongoing battle against deceptive practices in the app market highlights the need for greater scrutiny and regulation in the digital space.