The U.S. Federal Trade Commission has filed a lawsuit against Ukrainian IT giant Genesis Tech: what is the company accused of?
18 June 18:21
The U.S. Federal Trade Commission has filed a lawsuit in federal court against the Ukrainian IT company Genesis Tech and an associated international network of companies and individuals, whom the regulator accuses of creating and operating onlinesubscription schemes involving hidden terms, unauthorized charges, and complicated cancellation procedures. This was reported by "Komersant Ukrainian", citing the regulator.
Thus, at the request of the Federal Trade Commission, a U.S. federal court temporarily halted a large-scale network of fraudulent subscription schemes—comprising 15 corporations and eight individuals—that continued to deceive consumers with hidden costs and recurring payments, while failing to provide simple mechanisms for canceling subscriptions.
“Genesis Tech, along with its founders and CEOs, Volodymyr Mnoholitny and Vasyl Ulyanov, has created and operates a broad portfolio of deceptive online subscription schemes. These schemes range from an online program that claims to diagnose and treat ADHD symptoms to PDF editing tools, according to a complaint filed by the Federal Trade Commission (FTC). “The defendants deceptively sell subscriptions to consumers and bill them without their permission, defrauding consumers around the world,” the statement said.
The FTC alleges that Genesis Tech and its subsidiaries created and distributed dozens of products. Among those named in the complaint are the fitness apps MadMuscles, Harna, and Unimeal; Wisey self-improvement courses; PDF editing tools — PDF Guru and PDF Master, the fashion consulting service Lumi, and the horoscope and astrology app Nebula. According to the commission’s estimates, from early 2023 to mid-2025, five of these products generated approximately $250 million in global revenue.
The lawsuit alleges that the defendants employed typical hidden subscription practices: incomplete disclosure of terms, automatic and unauthorized charges, double billing, and the lack of simple and transparent mechanisms for canceling subscriptions.
According to the complaint, the network of companies operated through entities registered in Cyprus and Ukraine and used affiliate companies in Delaware to access U.S. payment systems and transfer funds between affiliated entities.
The FTC alleges that these activities violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). A federal court has already temporarily halted some of the network’s operations.
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