The U.S. Federal Trade Commission has filed a lawsuit against Genesis Tech, accusing the company of using a complex international network of shell companies to mislead consumers, hide its identity, and move app revenue overseas.
The case shines a spotlight on a growing problem in the mobile app economy: subscription-based apps that appear affordable or free at first, but later trap users in recurring charges that are difficult to cancel. According to the FTC, Genesis Tech operated through multiple subsidiaries incorporated in Cyprus and active in Ukraine, while marketing a wide range of apps to consumers in the United States.
The apps named in the complaint covered several popular categories, including fitness, nutrition, productivity, document tools, fashion, astrology, and self-improvement. Brands connected to the case include MadMuscles, Harna, Unimeal, PDF Guru, PDF Master, Lumi, Nebula, and Wisey.
The FTC alleges that these apps generated enormous revenue. From early 2023 through mid-2025, five of the companies tied to Genesis Tech reportedly brought in nearly $250 million globally. The complaint also states that transactions across connected PayPal accounts reached almost $700 million in the 12-month period ending in September 2025.
Regulators say Genesis Tech avoided detection by repeatedly creating new corporate entities and merchant accounts. This strategy allegedly helped the company bypass fraud monitoring systems and continue operating despite consumer complaints and suspicious billing activity.
At the center of the lawsuit are claims that Genesis Tech made subscriptions easy to start but difficult to stop. Many users were allegedly drawn in by offers that appeared free or low-cost, only to later discover they had been enrolled in auto-renewing subscriptions. In some cases, the FTC says customers were charged for extra services they did not knowingly approve. Others were allegedly double-charged or continued to be billed even after attempting to cancel.
The complaint also claims that cancellation options were often missing from the company’s websites and apps, leaving consumers with no clear way to stop recurring payments. This type of “dark pattern” design has become a major concern for regulators, especially as more mobile apps rely on subscription revenue.
The FTC says Genesis Tech’s conduct violated the FTC Act and the Restore Online Shoppers’ Confidence Act, a law designed to protect consumers from deceptive online billing practices. The lawsuit also names several individuals as co-defendants: Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk.
The case will be heard in the U.S. District Court for the Northern District of California.
This lawsuit is part of a broader push by the FTC to crack down on deceptive mobile app practices. In recent years, the agency has pursued cases involving social apps, dating platforms, gig economy services, children’s apps, mobile advertising businesses, and data brokers.
The Genesis Tech case also raises difficult questions for Apple and Google, whose app stores remain central gateways for mobile software. While both companies have fraud prevention systems and app review processes, the FTC’s allegations suggest that bad actors can still exploit subscription models, corporate structures, and payment systems to operate at scale.
For consumers, the case is another reminder to be cautious with free trials, low-cost offers, and recurring subscriptions. Before signing up for an app, users should carefully review billing terms, check renewal dates, monitor payment accounts, and confirm that cancellation options are easy to find. If an app makes it confusing or difficult to cancel, that may be a warning sign.
