FTC sues Genesis Tech over subscription scam network
The US Federal Trade Commission has filed a lawsuit against Genesis Tech, alleging the company defrauded consumers through a network of shell companies and subsidiaries. The scam network, which included fitness and nutrition apps, generated nearly $700 million in revenue in 12 months. The case highlights a growing challenge for Apple and Google to police app stores for subscription scams.
Key points
- The US Federal Trade Commission (FTC) has filed a lawsuit against Genesis Tech, a company accused of defrauding consumers through a network of shell companies and subsidiaries.
- The scam network, which included fitness and nutrition apps, generated nearly $700 million in revenue in 12 months, with Genesis Tech routing funds through multiple merchant accounts and corporate entities.
- The case highlights a growing challenge for Apple and Google to police app stores for subscription scams, which have evolved into intricate networks of shell companies.
- Genesis Tech's network included subsidiaries in Cyprus and Ukraine, and marketed apps to US consumers through brands such as MadMuscles, Harna, and Unimeal.
- The FTC alleges that Genesis Tech concealed its identity and hid its assets through the use of shell companies, and transferred funds across borders among its various corporate entities.
The US Federal Trade Commission (FTC) has filed a lawsuit against Genesis Tech, a company accused of defrauding consumers through a network of shell companies and subsidiaries. The scam network, which included fitness and nutrition apps, generated nearly $700 million in revenue in 12 months.
The case highlights a growing challenge for Apple and Google to police app stores for subscription scams, which have evolved into intricate networks of shell companies. Genesis Tech's network included subsidiaries in Cyprus and Ukraine, and marketed apps to US consumers through brands such as MadMuscles, Harna, and Unimeal.
The FTC alleges that Genesis Tech concealed its identity and hid its assets through the use of shell companies, and transferred funds across borders among its various corporate entities. The company's use of multiple merchant accounts and corporate entities made it difficult for regulators to track its activities.
The lawsuit marks a significant development in the FTC's efforts to combat subscription scams, which have become a major concern for consumers and regulators alike. The case is likely to have implications for the app store industry, and may lead to increased scrutiny of companies that operate in the space.
Sources
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