The Federal Trade Commission filed a lawsuit against JustAnswer LLC and its CEO Andrew Kurtzig, alleging the online question-and-answer service deceives consumers by enrolling them in costly recurring subscriptions without obtaining proper consent. The complaint, filed in the U.S. District Court for the Northern District of California, targets what the FTC characterizes as misleading pricing tactics that violate federal consumer protection laws.
JustAnswer operates JustAnswer.com and several specialized advice platforms, including AskALawyerOnCall.com, AskAVeterinarianOnline.com, and AskWomensHealth.com. According to the FTC's complaint, the company falsely advertises that consumers can access expert advice for as little as $1 or $5, creating the impression of a low-cost, one-time service.
However, the FTC alleges that when consumers sign up for what they believe is a minimal-cost consultation, JustAnswer automatically enrolls them in recurring monthly subscriptions ranging from $28 to $125. The company immediately charges both the advertised join fee of $1 or $5 and the full monthly subscription amount, continuing to bill consumers monthly until they actively cancel their subscription.
"JustAnswer's misleading pricing tactics obscured the true price of its services, preventing consumers from making an informed choice on whether JustAnswer's services were worth it to them," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "The FTC is focused on ensuring that online sellers transparently price their services."
The legal action centers on alleged violations of the Restore Online Shoppers' Confidence Act (ROSCA), a federal law designed to protect consumers from deceptive online billing practices. ROSCA requires companies to clearly and conspicuously disclose subscription terms before charging consumers for recurring services. The law also mandates that businesses obtain consumers' affirmative consent before enrolling them in automatic billing programs.
According to the complaint, while JustAnswer provides some information about monthly subscriptions on its website, the disclosure fails to meet ROSCA's standards for clear and conspicuous presentation. The FTC alleges that consumers provide credit card information without understanding they are agreeing to ongoing monthly charges, violating both ROSCA and the Federal Trade Commission Act.
The FTC's enforcement action reflects broader regulatory scrutiny of subscription billing practices in the digital economy. Companies offering online services have faced increasing pressure to ensure transparent pricing and obtain clear consumer consent for recurring charges. The case highlights the importance of honest advertising in sectors where consumers seek professional advice and may be vulnerable to misleading pricing schemes.
JustAnswer's business model centers on connecting consumers with experts across various fields, from legal and medical professionals to automotive and technology specialists. The platform markets itself as providing quick access to professional advice for users who need immediate answers to specific questions. However, the FTC's allegations suggest that the company's pricing structure creates confusion about the true cost of these services.
The complaint seeks several forms of relief from the federal court. The FTC is requesting an injunction to stop the allegedly deceptive practices, restitution for consumers who were harmed by the billing practices, and civil penalties against both JustAnswer and CEO Kurtzig. The case represents the FTC's ongoing efforts to protect consumers from misleading online marketing and billing practices.
The Commission voted 2-0 to file the complaint, indicating bipartisan support for the enforcement action. This unanimous decision reflects the agency's commitment to addressing deceptive practices that harm consumers in the digital marketplace.
The outcome of this case could have broader implications for how online service providers structure their pricing and subscription offerings. Companies operating similar business models may need to review their disclosure practices and billing procedures to ensure compliance with ROSCA and other consumer protection laws.
As the case proceeds through federal court, it will ultimately be decided by a judge rather than the FTC itself. The Commission's filing of the complaint indicates it has "reason to believe" that JustAnswer and Kurtzig are violating federal law and that legal action serves the public interest. The case joins a growing number of FTC enforcement actions targeting deceptive online billing practices across various industries.
Consumers who believe they have been affected by JustAnswer's billing practices may be able to recover funds if the FTC prevails in court. The agency's request for restitution could result in refunds for consumers who were charged subscription fees without proper disclosure or consent, though any such relief would depend on the court's final ruling in the matter.