WASHINGTON — The U.S. Federal Trade Commission has sued a group of companies and executives it describes as a common enterprise, alleging they used deceptive online subscription practices that enrolled consumers in recurring payment plans without adequate disclosure and made cancellations unnecessarily difficult, the agency said.
The complaint, filed in the U.S. District Court for the Northern District of California and announced by the FTC on June 17, seeks to halt what the agency alleges is a network of unlawful subscription schemes operating through multiple affiliated companies. According to the FTC, the defendants marketed products including fitness and nutrition applications, PDF editing tools, self-help courses, fashion consulting services and horoscope platforms while obscuring recurring charges and other material terms.
At the FTC's request, a federal court temporarily halted the operation while the case proceeds, the agency said. The Commission emphasized that the lawsuit contains allegations that must be proven in court and that the defendants are entitled to contest the claims.
“The Trump-Vance FTC is engaged in robust enforcement to address deception and illegal subscription offerings,” Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said in a statement released by the agency. “This case illustrates the benefits and importance of the Bureau's reinvigorated anti-fraud program.”
According to the complaint, the enterprise operated through a network of companies incorporated in Cyprus, Delaware and elsewhere. The FTC alleged that the businesses launched multiple online products under different brand names, failed to clearly disclose automatic renewals, charged consumers without valid authorization in some instances, and did not provide straightforward methods for canceling subscriptions.
The regulator also alleged that some consumers were billed for additional products they had not knowingly agreed to purchase and that recurring subscription terms were presented in small or inconspicuous text. The agency said the practices violated the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act.
The complaint names 15 corporate entities and eight individuals, including Genesis Tech founders Vladimir Mnogoletny and Vasily Ulianov. The FTC alleged the companies generated substantial revenue from the subscription programs between 2023 and 2025, though those allegations have not been tested in court.
Court filings cited by the FTC indicate the defendants have not yet prevailed on the merits of the case. Details of their response to the allegations were not immediately available.
The FTC said the case remains pending in federal court. The agency is seeking a permanent injunction, consumer redress and other relief authorized under federal law. No trial date had been announced as of Thursday.
