The US Federal Trade Commission (FTC) has sent a request to another Ukrainian technology company. It is an independent business with hundreds of employees, which operates on a subscription model and attracts users through performance marketing. The likely reason for the interest of the American regulator is the confusing terms of debiting funds and the difficulty of canceling paid access.
The US Federal Trade Commission (FTC) has sent a request to another Ukrainian technology company. It is an independent business with hundreds of employees, which operates on a subscription model and attracts users through performance marketing. The likely reason for the interest of the American regulator is the confusing terms of debiting funds and the difficulty of canceling paid access.
This is reported by Scroll.media, citing its own sources. The name of the company is not yet disclosed due to the sensitivity of the topic.
The developer’s business model is based on mobile apps and services. Users buy subscriptions, but the FTC’s complaints about the product are typical of such investigations: it’s difficult for users to opt out of the service, and it’s not always clear when signing up that the charges will be automatic every week or month. It’s unclear what stage the investigation is at now, and whether a formal lawsuit will be filed.
The FTC has been waging a systematic fight against companies that use so-called «dark patterns» in interfaces for many years. The commission’s policy requires that the process of unsubscribing from a product be as simple and transparent as the process of registering a subscription, and that the schedule and cost of payments remain clear to the user at each stage. Large American corporations, including Amazon and Adobe, have previously suffered from such inspections. Now the American regulator’s investigations have reached large Ukrainian players.
Recall that the FTC has previously filed a lawsuit against the Ukrainian IT product company Genesis, its founders and a number of affiliated structures. At the request of the regulator, a federal court temporarily suspended the activities of some Genesis-related companies in the United States. They are suspected of misleading consumers through hidden charges and artificially complicating the cancellation of subscriptions.
Ukrainian entrepreneurs and lawyers note that this legal precedent could significantly complicate the work of domestic developers in the American market, and defense in US courts would cost millions of dollars.
