The FTC has made it clear since the Eighth Circuit vacated its Negative Option Rule in 2025 enforcement of the Restore Online Shoppers' Confidence Act won't slow down. Its newest complaint proves the point.
On June 17, the FTC sued the Genesis Tech enterprise, 15 corporations and eight individuals, alleging deceptive subscription schemes that were run through marketing affiliates operating out of Ukraine and Delaware-based entities that access U.S. payment processors. The product portfolio ranges from ADHD diagnostic tools (Wisey) to PDF editors (PDF Guru and PDF Master) to horoscope chats (Nebula). Five of the products alone allegedly generated close to a quarter billion dollars in revenue between early 2023 and mid 2025.
The complaint reads like the standard playbook executed at scale: material terms buried in fine print, undisclosed auto renewal, unauthorized double charges, and cancellation made deliberately difficult, including continued billing after a consumer confirmed he or she had canceled. The enterprise also allegedly kept spinning up new entities and merchant accounts specifically to stay ahead of payment processor fraud monitoring. Not a good look.
The FTC is proceeding under Section 5 of the FTC Act and ROSCA, which between them require clear and conspicuous disclosure of material terms before enrollment, express informed consent before billing, and a simple cancellation mechanism. The agency has been enforcing those requirements aggressively, including actions against Amazon over its Prime enrollment and cancellation flows and against the operator of the LA Fitness chain. Genesis Tech is the latest addition to that list, not an outlier.
For clients engaged in subscription-based marketing, including free trial offers that roll to pay, the advice is straightforward. Put material terms where consumers will see them before they sign up, get informed, affirmative consent before charging, and make the cancellation process easy to understand and effectuate. If your cancellation flow needs a flowchart to explain, the FTC will happily draw one for you in a complaint.
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
