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ARTICLE · 30 JUNE 2026

FTC Files Lawsuit To Stop Subscription Schemes

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

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The Federal Trade Commission has filed a lawsuit against an enterprise of 15 corporations and eight individuals accused of running deceptive subscription schemes.

United StatesConsumer Protection
Gonzalo E. Mon
Gonzalo E. Mon

Following the FTC’s announcement of a $35 million settlement with Shutterstock over its automatic renewal and cancellation practices last month, the Commission recently announced that a federal court has temporarily halted an enterprise—comprised of 15 corporations and eight individuals—from running “deceptive subscription schemes.”

According to the FTC’s complaint, the enterprise continually launched new product offerings, registered new Delaware shell companies, and opened fresh merchant accounts to hide its true identity from consumers and evade fraud-monitoring programs.

The FTC’s allegations highlight three core tactics that serve as a textbook list of what not to do if you offer recurring subscriptions:

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