• Business Business

US court halts alleged subscription empire that hid fees, blocked cancellations, and made $250M

The Genesis Tech enterprise left consumers paying for subscriptions they may not have clearly agreed to.

A person holding a credit card while using a laptop on a wooden table with a notebook and smartphone nearby.

Photo Credit: iStock

A federal court has, for now, stopped an online subscription operation accused of burying fees, billing consumers without proper authorization, and making it much easier to sign up than to cancel.

Authorities tied the operation to a cluster of Genesis Tech-linked companies selling everything from workout apps and PDF software to style consulting and psychic chats.

What happened?

The action became public on June 17, when the Federal Trade Commission said a federal court in California had temporarily blocked 15 corporations and eight individuals allegedly involved in deceptive subscription schemes.

As Regulatory Oversight reported, the FTC said the Genesis Tech enterprise used buried fees, repeat billing, and poor cancellation tools, leaving consumers paying for subscriptions they may not have clearly agreed to.

Among the services listed in the complaint are Nebula's horoscope and psychic chats, Lumi fashion consulting, PDF Guru and PDF Master, the Wisey productivity course, and the apps MadMuscles, Harna, and Unimeal.

The agency also described a multinational network involving entities in Cyprus, Ukraine, and Delaware that it says helped market to U.S. consumers, handle payments, and conceal who was behind the operation.

Over just five products, the complaint alleges, the business generated about $250 million worldwide from early 2023 through mid-2025.

Why does it matter?

Subscription traps can quietly drain bank accounts and credit cards month after month. Hidden renewals and hard-to-use cancellation processes can turn a free trial or one-time purchase into a long-running expense.

The case spans multiple brands. When a company can roll out new products, new merchant accounts, and new corporate identities, it can become much harder for customers to determine who is billing them and how to stop the charges.

What's being done?

The FTC filed the case in California's Northern District federal court after a 2-0 commission vote, alleging violations of the FTC Act and ROSCA, the Restore Online Shoppers' Confidence Act.

Those laws are meant to stop companies from using deceptive online sales tactics and charging customers without clear consent.

"The Trump-Vance FTC is engaged in robust enforcement to address deception and illegal subscription offerings," Mufarrige said, adding that the case "illustrates the benefits and importance of the Bureau's reinvigorated anti-fraud program."

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider