The Australian Competition and Consumer Commission has launched Federal Court proceedings against JustAnswer LLC for allegedly misleading consumers about its $2 service fee that concealed ongoing monthly subscriptions of $50-$90 and falsely suggesting government affiliation.

The US-based question-and-answer service faces allegations it breached consumer laws from November 2022 by using deceptive practices that caused financial harm to Australian consumers.

According to the ACCC, JustAnswer’s website chat widget promoted access to subject matter “experts” for just $2, but failed to adequately disclose that users were simultaneously enrolled in subscriptions costing between $50 and $90 monthly.

“Had consumers been aware that the total price of the JustAnswer online service cost at least 25 times more per month than the promoted joining fee, they may have chosen not to use it,” said ACCC Deputy Chair Catriona Lowe.

The regulator alleges the chat widget made no mention of additional charges, with the substantial monthly fee only appearing on the payment screen in a manner “many consumers would not have seen.”

Beyond pricing issues, the ACCC alleges JustAnswer misrepresented itself as sponsored by, approved by, or affiliated with:

  • The Fair Work Ombudsman
  • Australian Ombudsman offices
  • Australian Government departments

“We consider some consumers may have engaged with JustAnswer on the mistaken belief that their questions would be answered by an independent ombudsman, such as the Fair Work Ombudsman,” Lowe said.

In response to the proceedings, JustAnswer issued a statement acknowledging the ACCC’s action and defending its services.

“JustAnswer acknowledges the proceedings commenced today by the Australian Competition and Consumer Commission (ACCC) in the Federal Court of Australia. The ACCC’s claims relate to disclosures around the price and nature of services provided by JustAnswer in Australia,” the company said.

“JustAnswer is treating the ACCC’s claims seriously and continues to engage constructively with the ACCC.”

The company said it had already taken steps to address disclosure concerns, stating, ”JustAnswer has voluntarily enhanced the disclosure of the price and nature of its services to Australian customers and remains committed to continually improving its processes to enhance the services provided to Australian customers.”

The ACCC launched its investigation after receiving “large numbers of complaints” from consumers who either:

  • Were unaware of ongoing subscription charges
  • Believed they were dealing with an Australian government body

These complaints align with findings from the ACCC’s Digital Platform Services Inquiry, which identified subscription traps as a persistent consumer harm in digital markets.

JustAnswer operates in 196 countries with over 700 employees, connecting consumers to self-described experts in fields including medicine, law, accounting, and technology.

Australian consumers typically encounter the service through search engine results and sponsored search ads.

The current proceedings focus solely on the website experience, not the Android/iOS app versions of the service.

The ACCC is seeking comprehensive remedies including:

  • Compensation orders for affected consumers
  • Injunctions preventing future violations
  • Civil pecuniary penalties
  • Publication orders to inform consumers
  • Implementation of a compliance program Court costs

The case forms part of the ACCC’s current enforcement priority targeting consumer issues in the digital economy, particularly unfair subscription practices and subscription traps.

The ACCC’s June 2024 Digital Platform Services Inquiry report highlighted ongoing consumer harms from:

  • Manipulative interface designs steering users to expensive options
  • Undisclosed sponsorships
  • Difficult cancellation processes

Australian consumers who believe they were misled by JustAnswer should:

  • Check bank statements for unexpected recurring charges
  • Document any misleading representations encountered
  • Consider reporting experiences to the ACCC
  • Monitor the court proceedings for potential compensation

The case highlights risks when engaging with online services, particularly those appearing in search results that may mimic official government resources.

The proceedings send a clear message to digital platforms operating in Australia that:

  • Subscription fees must be clearly disclosed upfront False government affiliation claims face serious consequences
  • “Dark patterns” in user interface design are under scrutiny
  • International companies must comply with Australian consumer laws

For legitimate online services, the case underscores the importance of transparent pricing, clear disclosure of subscription terms, and accurate representation of any government relationships.

The Federal Court proceedings continue, with JustAnswer yet to file its defence to the allegations.