JustAnswer Faces ACCC Action Over Alleged Misleading Pricing and Government Affiliation Claims

The Australian Competition and Consumer Commission (ACCC) has launched proceedings in the Federal Court against US-based company JustAnswer LLC, alleging it misled consumers through pricing practices and claims of government affiliation. (Source: ACCC media release, 23 September 2025)

ACCC takes action against JustAnswer over alleged misleading pricing, subscription traps and false government affiliation claims — a warning for digital businesses.

What the ACCC Alleges

According to the ACCC, JustAnswer represented that consumers could use its online “expert advice” service for a one-off fee of just $2. However, many consumers were then enrolled in ongoing subscriptions costing between $50 and $90 per month.

The ACCC claims:

• Consumers were not adequately informed of the ongoing charges.

• Subscription fees were displayed in ways that many users would not notice until after entering payment details.

• The design of the service amounted to a “subscription trap”, a manipulative online practice that can cause significant financial harm.

Deputy Chair Catriona Lowe noted that if consumers had understood the real monthly costs — at least 25 times higher than the advertised $2 — they might have avoided signing up altogether.

Misleading Government Affiliation Concerns

The ACCC also alleges JustAnswer misrepresented its connection to Australian government agencies and Ombudsman services. Some consumers believed they were dealing with organisations such as the Fair Work Ombudsman, when in reality they were engaging with a private US-based business.

The ACCC began investigating after receiving large numbers of consumer complaints, many from people who thought they were speaking to an Australian government body.

What the ACCC is Seeking

In this case, the ACCC is asking the Federal Court for:

• Compensation orders for affected consumers.

• Civil penalties against JustAnswer.

• Injunctions to stop misleading conduct.

• Declarations of consumer law breaches.

• The introduction of a compliance program.

Why This Matters for Businesses

This case is a timely reminder for all businesses operating in Australia — especially those providing digital or subscription-based services — that:

• Transparency in pricing is essential. Hidden charges can amount to misleading conduct under the Australian Consumer Law.

• Subscription traps are a growing focus of ACCC enforcement.

• False or implied affiliations with government bodies can create serious compliance risks and result in heavy penalties.

The ACCC’s Digital Platform Services Inquiry has already highlighted “dark patterns” in online design, where consumers are nudged into subscriptions or purchases they didn’t intend. These practices remain a top enforcement priority.

 

How Bane Legal Services Can Help

At Bane Legal Services, we understand how easy it is for businesses to accidentally fall foul of complex consumer laws. While we are not a law firm and do not provide legal advice, we act as your trusted legal matchmaker. With over 30 years of business experience, we connect clients with the right commercial lawyer to help manage compliance risks, protect their reputation, and navigate disputes.

If your business relies on subscriptions, online advertising, or consumer-facing platforms, now is the time to ensure your contracts and customer communications comply with Australian Consumer Law.

👉 Need the right commercial lawyer for your business? Bane Legal Services can connect you today.