FTC Widens Subscription Crackdown

A $1.99 charge that morphs into $45 a month. A fun personality quiz that ends at a credit card form. A cancel button that leads nowhere. These are the building blocks of a deception machine, according to the Federal Trade Commission, which moved to shut one down.

The FTC’s latest enforcement action is aimed at a single network of apps, but its message lands on every business that sells a subscription.

The FTC filed a complaint last month against Genesis Tech, its related entities and eight individuals, accusing them of running the same playbook across a portfolio of online products, according to a June 17 press release. The names include MadMuscles, Wisey, PDF Guru, Lumi and Nebula.

The alleged pattern was consistent, law firm Davis+Gilbert said in an analysis of the case. Hook consumers with a free or low-cost offer, build trust through quizzes and personalized results, hide the auto-renewal terms, charge unexpected recurring fees, and make canceling difficult.

At the agency’s request, a federal court issued a temporary restraining order halting the operation, the release said.

The complaint signals a shift in how the FTC polices subscription businesses, according to the analysis. The agency is no longer asking only whether the required disclosures exist somewhere on the page. It is judging the entire customer journey, from the first ad a consumer sees to the moment they try to walk away.

Think of it like reviewing a restaurant. An accurate bill at the end of the night does not count for much if the menu promised a free meal. In the FTC’s view, a truthful line of fine print at checkout cannot undo an hour of messaging that told consumers they were making a one-time purchase. As Davis+Gilbert put it, “fine print that contradicts the main message is inadequate.”

Pricing language sits at the center of the case. The complaint targeted phrases such as “trial price,” “total due today” and “you will be charged only $5,” the analysis said. The FTC said these words plant the idea of a single payment. Unless the recurring charge, renewal schedule and cancellation deadline appear just as prominently, the impression is deceptive.

The agency alleged PDF Guru told consumers they were paying a small one-time fee to download a document, while the subscription terms sat in less prominent text. Nebula allegedly promoted a personalized reading for $5 while a $45 charge every 30 days hid in the fine print, according to the analysis.

Cancellation problems form a separate violation. Federal law requires companies to offer a simple way to stop recurring charges. The complaint alleged the Genesis Tech network offered broken cancellation options, unresponsive support and continued billing after customers were told they had canceled, per the analysis. The FTC has enforced this rule before, most recently in a $35 million settlement with Shutterstock in May.

The agency also flagged upsells that used stored payment details and were dressed up to look like confirmation steps or free add-ons, the analysis said. Davis+Gilbert advised companies to handle every upsell as its own transaction, with clear pricing and consent before any charge.

So, what comes next? Davis+Gilbert said in the analysis that it expects this case to kick off a wave of similar FTC enforcement, and it urged subscription businesses to get ahead of it. The firm recommended a full audit of the sign-up journey. That means reviewing pricing pages and buttons for anything that suggests a standalone payment, confirming that subscription terms are clear and agreed to before billing information is collected, and testing cancellation paths to make sure they actually work.

Companies should also examine their upsell screens for design tricks that nudge consumers into charges they never intended, the analysis said. The FTC made its standard plain. The whole journey counts, not just the checkout page.