FTC Shuts Down Deceptive Subscription Enterprise
The US Federal Trade Commission has temporarily shut down a sprawling enterprise of deceptive subscription apps, freezing the operations of 15 corporations and eight individuals accused of charging consumers without permission. The FTC alleges Genesis Tech operated as a single common enterprise behind a portfolio of unrelated-looking products, including fitness and nutrition apps, PDF editors, and a horoscope app.
Key points
- The US Federal Trade Commission has temporarily shut down a sprawling enterprise of deceptive subscription apps, accusing 15 corporations and eight individuals of charging consumers without permission.
- The FTC alleges Genesis Tech, a company founded by Vladimir Mnogoletny and Vasily Ulianov, operated as a single common enterprise behind a portfolio of unrelated-looking products.
- The portfolio includes fitness and nutrition apps, PDF editors, and a horoscope app, among others.
- The FTC has frozen the operations of the accused companies and individuals, pending further investigation.
- The case highlights concerns about the regulation of online subscription services and the use of complex corporate structures to evade oversight.
The US Federal Trade Commission (FTC) has taken action against a sprawling enterprise of deceptive subscription apps, accusing 15 corporations and eight individuals of charging consumers without permission. The FTC alleges that Genesis Tech, a company founded by Vladimir Mnogoletny and Vasily Ulianov, operated as a single common enterprise behind a portfolio of unrelated-looking products.
The portfolio includes a range of apps, from fitness and nutrition apps like MadMuscles and Harna, to PDF editors like PDF Guru and PDF Master, and even a horoscope app called Nebula. The FTC alleges that these apps were marketed to American users through a chain of affiliates incorporated in Cyprus and operating in Ukraine, while routing payment processing through Delaware shells.
The FTC's complaint, filed in the US District Court for the Northern District of California, seeks to freeze the operations of the accused companies and individuals pending further investigation. The case highlights concerns about the regulation of online subscription services and the use of complex corporate structures to evade oversight.
The FTC's action is part of a broader effort to crack down on deceptive business practices and protect consumers from unauthorized charges. The case is likely to have implications for the online subscription services industry, which has grown rapidly in recent years.
Sources
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