The Federal Trade Commission (FTC) has sued JustAnswer LLC and its founder and CEO, Andrew Kurtzig, alleging that the online Q&A platform deceives consumers into costly recurring subscriptions without their informed consent, in violation of the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 of the FTC Act.
JustAnswer, which operates JustAnswer.com and niche sites like AskALawyerOnCall.com, AskAVeterinarianOnline.com, and AskWomensHealth.com, advertises expert help for as little as $1 or $5. According to the complaint, when consumers enter their payment information, they are instead enrolled in a recurring monthly subscription costing $28–$125 in addition to the $1 or $5 “join” fee.
The FTC claims JustAnswer failed to clearly and conspicuously disclose the subscription terms as required by ROSCA, which mandates that online sellers using automatically renewing subscriptions must: (1) clearly disclose material terms before obtaining billing information; (2) obtain express informed consent before charging; and (3) provide a simple way to stop recurring charges. As a result, consumers allegedly provided credit card information without affirmatively agreeing to an ongoing plan.
Why This Matters
If the FTC prevails, the case could result in monetary relief, injunctive relief, and civil penalties, and would further highlight the agency’s crackdown on “dark patterns” and deceptive subscription practices, despite the FTC’s Negative Option Rule, commonly known as the Click-to-Cancel rule, being struck down last summer.
For businesses, the case underscores the FTC’s focus on:
- Transparent pricing;
- Clear, conspicuous disclosure of subscription terms; and
- Obtaining affirmative, informed consent for recurring charges.
Online services using trials, teaser pricing, or negative option billing should closely review their practices for compliance with ROSCA and the FTC Act.