Recently, the Federal Trade Commission (“FTC”) filed a Complaint against JustAnswer LLC and its CEO, alleging the company misled consumers into enrolling in monthly recurring subscriptions without obtaining consumers’ affirmative consent.
According to the FTC’s Complaint, many consumers believed they were paying a one-time fee to get an answer from an expert. Instead, they were unknowingly signed up for ongoing monthly subscriptions costing anywhere from $28 to $125. The FTC alleges JustAnswer used misleading practices-including confusing checkout flows and buried disclosures-to make it difficult for users to understand they were enrolling in a subscription or to cancel it afterward.
The FTC is seeking injunctive relief, consumer refunds, and changes to JustAnswer’s business practices. The case underscores the agency’s growing focus on deceptive subscription models and reinforces that companies must clearly disclose recurring charges and obtain consumers’ express, informed consent.
For businesses, this lawsuit serves as a reminder that transparency in pricing, subscriptions, and cancellation processes is not just best practices-it’s the law. Read more about the FTC’s recent action and proposed settlement order here.