A dodgy US company that has been quietly raking in subscription revenue from Australian consumers and businesses seeking answers on computer technology, electronics and home appliances has been hit with a $10 million penalty in the Federal Court, after admitting it misled users into an expensive subscription trap.

San Francisco-founded JustAnswer LLC, which has no Australian-registered subsidiary and not a single employee based in Australia despite carrying on business here since 2003, agreed to the penalty in late June following action by the Australian Competition and Consumer Commission, which is now investigating several other companies over similar questionable subscription practices.

The Court found JustAnswer made misleading representations about the cost of its online question and answer service, and falsely claimed it was approved by or affiliated with the Fair Work Ombudsman.

The Court has also ordered the company to refund Australian consumers who, between November 2022 and August 2025, were led to believe they could use the service for as little as AU$2, only to find themselves locked into ongoing monthly subscriptions costing up to $75.

JustAnswer

The $2 Hook

JustAnswer operates an online service connecting consumers with so-called “experts” in fields including medicine, law, accounting and technology. The ACCC launched proceedings in September 2025 after a flood of complaints from consumers who claimed they had been signed up to subscriptions they never agreed to.

From November 2022 to August 2025, the chat widget on the JustAnswer website told Australian consumers, “I’m sending you to a secure page to join JustAnswer for only AU$2 (fully refundable)”.

In reality, consumers who joined were enrolled in an ongoing subscription costing between $45 and $75 per month, and were billed whether they used the service or not.

JustAnswer admitted the conduct breached the Australian Consumer Law by representing that consumers could use the service for a one-off $2 joining fee when an ongoing subscription fee also applied.

“Misleading consumers into paying for subscriptions they do not want or did not intend to buy is a serious breach of the Australian Consumer Law,” ACCC Commissioner Luke Woodward said.

“The ACCC will not hesitate to take action where we see evidence of businesses misleading consumers into signing up to a subscription trap by not giving them the necessary up-front information about ongoing subscriptions fees.”

“Consumers suffered financial harm by being charged a monthly subscription fee that they were not expecting to pay, which had not been adequately disclosed and continued until the consumer took action to cancel the subscription,” Woodward said.

“Had consumers been aware of the full cost of the service, they may have chosen not to sign up for the JustAnswer service at all.”

Fake Ombudsman Claims

The company also admitted that from June 2022 to February 2024 it made false or misleading claims about an affiliation with the Fair Work Ombudsman, publishing statements on its website such as “Chat with a Fair Work Ombudsman 1:1”.

Similar false statements referencing an “AU Ombudsman”, including “Chat with an AU Ombudsman for personalized help”, ran between June 2022 and March 2025.

“Some consumers may have joined JustAnswer under the mistaken belief that their questions would be answered by an Australian Ombudsman, such as the Fair Work Ombudsman,” Woodward said.

“JustAnswer’s conduct prevented consumers from making informed decisions about whether to use the service and whether the service was appropriate for their needs.”

Refunds On The Way

JustAnswer will contact affected consumers who have not already received a full refund and who complained to the company or the ACCC. Consumers who were unaware they would be charged monthly subscription or membership fees, and who have not previously complained, can also contact JustAnswer directly to apply for a refund.

Beyond the penalty and refunds, the Federal Court ordered JustAnswer to publish a corrective notice on its website, implement and maintain a consumer law compliance program, and contribute to the ACCC’s costs. An injunction also prevents the company from engaging in similar conduct in the future.

Global Regulatory Pincer

The Australian penalty lands as JustAnswer faces mounting legal pressure in its home market.

The privately held company, registered in Idaho and founded and run by CEO Andrew “Andy” Kurtzig, employs around 700 people and has raised roughly US$50 million from investors. It operated out of San Francisco headquarters until at least July 2023 before shifting to virtual operations with a principal place of business in California.

In January 2026, the US Federal Trade Commission sued JustAnswer and Kurtzig personally, alleging the service enrols people in recurring subscriptions without affirmative consent, with monthly fees of US$28 to US$125 charged on top of advertised US$1 or US$5 joining fees.

A US class action, Larson v JustAnswer, has also been filed in a California federal court over the same auto-enrolment practices.

The $10 million outcome adds to the ACCC’s widening crackdown on subscription traps, sitting alongside its recent actions against Microsoft over Copilot pricing and Amazon over Prime membership terms.