The Australian Competition and Consumer Commission has commenced Federal Court proceedings against US‑based online advice platform JustAnswer LLC, alleging the company misled consumers about its links to Australian ombudsmen or government agencies and concealed the true cost of its service.
The ACCC says that from about 1 November 2022 JustAnswer promoted access to its question‑and‑answer service via a chat widget for a one‑off joining fee of AUD$2. In practice, the regulator alleges, customers who paid the $2 were enrolled in ongoing subscriptions that cost between about $50 and $90 a month, and were not adequately warned of those recurring charges.
“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,” ACCC Deputy Chair Catriona Lowe said.
The ACCC also alleges the chat widget and other parts of JustAnswer’s website did not disclose the full price until users reached a payment screen, and that the monthly subscription fee “was shown in a way that we believe many consumers would not have seen,” Ms Lowe said.
“Through its chat widget, JustAnswer offered to connect consumers to ‘experts’ in particular subject areas for a one-off fee of $2. The chat widget didn’t disclose any other charges, and the substantially higher ongoing monthly fee was not mentioned until consumers were directed to a payment screen.”
The regulator says it received large numbers of complaints from people who said they were unaware they had been signed up to an ongoing subscription, or who believed they were dealing with an Australian government body. The ACCC alleges JustAnswer also gave the misleading impression it was sponsored, approved by or affiliated with the Fair Work Ombudsman, an Australian ombudsman or an Australian government department.
“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,” Ms Lowe said.
JustAnswer, which is registered and based in the United States and operates in 196 countries, connects consumers with subject‑matter “experts” in areas such as medicine, law, accounting and technology. The ACCC said the allegations relate to the company’s website and chat widget; its Android and iOS apps are not the subject of the current proceeding.
The ACCC is seeking compensation orders for affected consumers, injunctions, civil pecuniary penalties, publication orders, costs, declarations that JustAnswer contravened consumer law, and the implementation of a compliance programme.
“Manipulative online design practices which guide consumers to sign up for subscriptions they do not want or did not intend to buy can cause distress and financial loss,” Ms Lowe said.
The ACCC’s action comes as its Digital Platform Services Inquiry found consumers continue to face harms from manipulative interface design, undisclosed sponsorships and subscription traps — practices that can lead consumers to sign up for recurring payments when they expect a one‑off purchase.
