FTC lawsuit reveals app store scam networks

A new Federal Trade Commission lawsuit highlights the sophisticated methods used by app developers to defraud consumers and evade app store enforcement. Genesis Tech, operating through a network of shell companies in Cyprus and Ukraine, allegedly generated nearly a quarter-billion dollars in revenue from fitness, PDF, fashion, and horoscope apps. These companies made it easy to subscribe but difficult to cancel, often charging users without consent and routing funds internationally to conceal their operations. The FTC's complaint, filed in the Northern District of California, names Genesis Tech and several individuals, alleging violations of consumer protection laws.