FTC lawsuit reveals how subscription scam networks evade app store enforcement (opens original article in a new tab)
The FTC filed a lawsuit against Genesis Tech, alleging it used shell companies to hide its identity and generate over $250 million in revenue through deceptive subscription apps that tricked users with hidden charges and difficult cancellations.
- FTC lawsuit alleges Genesis Tech used shell companies in Cyprus and Ukraine to hide identity and assets
- Genesis Tech's subsidiaries generated nearly $250 million in revenue from U.S. consumers through apps like MadMuscles and PDF Guru
- Apps used auto-renewing subscriptions and hidden charges, making cancellation difficult for users
- FTC claims Genesis Tech violated FTC Act and ROSCA by deceptive subscription practices
- FTC has previously taken action against other app companies for similar violations
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