Consumer fraud case where the FTC sued JustAnswer LLC for deceiving consumers into enrolling in a costly recurring monthly subscription by falsely claiming low one-time fees. The company did not obtain affirmative consent or clearly disclose subscription terms, violating ROSCA and the FTC Act. The FTC seeks an injunction, consumer refunds, and civil penalties.
The FTC seeks an injunction to stop the deceptive practices, consumer refunds for those harmed, and civil penalties against JustAnswer and its CEO.
In-house legal teams should review all customer-facing agreements, particularly those for subscription-based services or 'free trial' offers. Focus on clauses governing billing, payment terms, automatic renewals, and cancellation. Specifically examine whether the agreement requires an unambiguous, affirmative act (e.g., checking a box) to consent to a recurring subscription, and whether the total cost and recurring nature of the charge are disclosed clearly and conspicuously before payment. Contracts may need revision to ensure the initial offer price is not misleadingly presented as a one-time fee when a subscription is the default, and to implement a simple, accessible cancellation mechanism that aligns with ROSCA's requirements.
Entity
JustAnswer LLC
Also known as: JustAnswer
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-sues-justanswer-deceiving-consumers-enrolling-costly-recurring-monthly-subscription
JustAnswerComplaint FILED
https://www.ftc.gov/system/files/ftc_gov/pdf/JustAnswerComplaint_FILED.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"JustAnswer LLC"
"violates ROSCA and the FTC Act."
"without obtaining consumers’ affirmative consent"
"does not disclose the terms clearly and conspicuously"
$12.0M
The FTC alleged that payment processor Humboldt Merchant Services knowingly processed payments for more than 1,000 shell merchant entities serving as fronts for fraudulent companies engaged in unauthorized billing scams, despite red flags including chargeback rates nearly 10 times higher than card-brand thresholds. Under the proposed stipulated order filed in the U.S. District Court for the Eastern District of Michigan, Humboldt will pay $12 million for consumer redress and is permanently banned from processing payments for merchants with a heightened risk of potential fraud.
$4.8M
The FTC charged Canada-based payment processor Nuvei Corporation and its subsidiaries with knowingly processing payments for fraudulent merchants, including more than $30 million in payments for the Reimage tech support scam from 2017 to 2023, as well as merchants making false earnings claims and impersonating government tax authorities. Under the stipulated order filed in the U.S. District Court for the District of Arizona, Nuvei will pay $4.85 million for consumer redress, is banned from serving tech support telemarketers, and must implement robust merchant screening and chargeback monitoring practices. Note: this is a payments-fraud facilitation action under the FTC Act and Telemarketing Sales Rule, not a data privacy violation.
The FTC announced a seven-day extension of the public comment period on its proposed enforcement policy statement regarding personalized pricing, pushing the deadline from Sept. 18, 2026 to Sept. 25, 2026. Personalized pricing refers to using personal data to set prices based on what the company believes an individual consumer is willing to spend. This is a procedural announcement about draft agency guidance, not an enforcement action against any company, and no entity was named, no violation found, and no penalty imposed.
Colorado Attorney General Phil Weiser joined the FTC and 22 state attorneys general in filing a lawsuit against Amazon for manipulating the auctions used to set advertising prices, replacing actual auction results with higher prices since 2019 and overcharging nearly 1.2 million U.S. advertising customers. The FTC estimates total improper surcharges from 2018 to 2026 exceed $20 billion, with costs ultimately passed to shoppers through higher prices. The states seek a permanent injunction and monetary relief; no penalty has been imposed yet as this is a newly filed complaint.
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.