The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against JustAnswer LLC in the Federal Court, accusing the company of misleading consumers regarding its online question and answer service. The allegations include false representations about the service's affiliation with Australian government agencies and misleading pricing practices.

According to the ACCC, JustAnswer misled consumers by advertising its service for a nominal fee of AUD$2, while failing to adequately disclose that users would be automatically enrolled in a subscription costing between AUD$50 and AUD$90 per month. This lack of transparency allegedly caused financial harm to consumers who were unaware of the ongoing charges.

ACCC Deputy Chair Catriona Lowe emphasized that had consumers known the total cost of the service was significantly higher than the advertised fee, many would have opted not to use it. The chat widget used by JustAnswer did not clearly display the subscription fees, leading to claims of manipulative online design practices that misled consumers into unwanted subscriptions.

In addition to the pricing issues, the ACCC claims JustAnswer falsely suggested that its services were endorsed or affiliated with the Fair Work Ombudsman or other Australian government departments. This misrepresentation may have led consumers to believe they were interacting with an independent ombudsman.

The ACCC's investigation was prompted by numerous consumer complaints regarding the lack of awareness about ongoing subscription fees and the mistaken belief that they were dealing with a government entity. The ACCC is seeking various remedies, including compensation for affected consumers, civil penalties, and the implementation of a compliance program by JustAnswer.