A new lawsuit filed by the U.S. Federal Trade Commission (FTC) reveals emerging challenges app stores face in combating subscription fraud. Regulators allege that a company called Genesis Tech long concealed its true identity through multiple layers of subsidiaries, cross-border fund transfers, and repeatedly opening merchant accounts, selling apps to U.S. consumers with deceptive subscription mechanisms.
Involves multiple companies and various types of applications
The complaint reveals that this network includes multiple affiliated companies registered in Cyprus and operating in Ukraine, promoting various apps to U.S. users. The related products span categories such as fitness, nutrition, PDF tools, fashion, astrology, and habit management.
The brands named include MadMuscles, Harna, Unimeal, PDF Guru, PDF Master, Lumi, Nebula, and Wisey. The FTC stated that these products commonly feature an easy-to-sign-up but difficult-to-cancel process.
- From early 2023 to mid-2025, the global revenue of five companies' products approached $250 million.
- Over the 12 months ending September 2025, the total transaction volume linked to PayPal accounts approached $700 million.
Evading risk controls through new entities and new accounts
The FTC stated that Genesis Tech continuously registered new corporate entities and established multiple merchant accounts to conceal its operating entity and evade the platform’s fraud detection systems. After acquiring revenue, the funds were further transferred across borders among related companies to obscure asset ownership and fund flows.
This case demonstrates that the pressure on Apple and Google is no longer limited to individual problematic apps. As subscription fraud evolves from isolated products into corporate networks, the platforms’ existing review and risk control methods struggle to identify the actual parties behind them.
Unsubscribing has been reported to have obstacles set up
According to the complaint, the relevant apps and websites did not provide users with a clear cancellation pathway, and in some cases, omitted the cancellation option altogether. The FTC also alleged that the company continued charging users without authorization.
The FTC believes these practices violate the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act. The case has been filed in the U.S. District Court for the Northern District of California, with several individuals also named as co-defendants.
TechCrunch said it reached out to the involved subsidiary via a public email address but has not yet received a response.
In recent years, the FTC has continuously strengthened its enforcement against apps.
The FTC has previously taken action against multiple mobile apps and related companies, including the anonymous Q&A app NGL, dating platform Match, gig platform Handy, children’s app developer HyperBeard, and mobile advertising company Tapjoy and data broker X-Mode.
This lawsuit further demonstrates that regulators are shifting their focus from individual违规 products to the underlying corporate structures, payment pathways, and cross-border operational methods.