The FTC sued the Genesis Tech enterprise and its owners for operating deceptive internet-based subscription schemes. The defendants allegedly misled consumers about subscription terms, billed without authorization, and made cancellation difficult. The court granted a temporary halt to the operations pending trial.
A federal court temporarily halted the enterprise's deceptive subscription schemes pending trial. No monetary penalty or other remedies have been imposed yet.
In-house legal teams should review vendor agreements for subscription-based services, particularly clauses related to auto-renewal, cancellation mechanisms, and disclosure of material terms. Ensure contracts require clear and conspicuous disclosure of subscription terms, explicit consumer consent before billing, and simple cancellation processes. Also review payment processing agreements to ensure compliance with ROSCA and FTC Act requirements regarding negative option marketing.
Entity
Genesis Tech enterprise
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-sues-stop-sprawling-enterprise-operating-unlawful-subscription-schemes
Growthmind Wisey Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/Growthmind-Wisey-Complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Genesis Tech enterprise"
"Failure to disclose material terms"
"Charges without authorization"
"Failure to provide simple cancellation mechanisms"
"FTC Act"
"Restore Online Shoppers' Confidence Act (ROSCA)"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.