An example of a website managed by Just Answer.
Federal Trade Commission
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Federal Trade Commission
An artificial intelligence-powered search engine known as Pearl is touted as a signature service. Large language models provide answers generated and humans engage with follow-up questions and fact-checking.
According to some, there’s just one problem. lawsuit A lawsuit filed by the Federal Trade Commission on Tuesday alleges that the company’s service is a ruse that routinely locks consumers into unwanted fees, a scheme that has ensnared hundreds of thousands of people and that federal regulators have called “rampant consumer deception.”
Here’s how federal investigators say it worked. When users browse the web and click on an ad related to an online search, they land on one of the many landing pages operated by the company. Some of the domains include JustAnswer.com, AskWomensHealth.com, AskALawyer.com, Pearl.com, and hundreds of others.
The assistant chatbot, known as Pearl, then asks further questions about the search and sends the user a form to join the company’s question-and-answer service for $1 or $5. According to the federal complaint, the company begins to exploit consumers once they hand over their credit card information.
“JustAnswer charges consumers both a $1 or $5 participation fee and a significantly higher monthly subscription fee immediately after signing up,” according to a lawsuit by federal regulators, which launched an investigation into the company in 2022.
Unwanted monthly charges can be as high as $79 and continue every month until canceled by the consumer. The information is displayed in fine print above a large orange button that says “Check now.”
Federal investigators say the process deceived hundreds of thousands of consumers, prompting a flood of complaints describing the company’s “deceptive” practices in the lawsuit.
The company’s CEO, Andy Kurzig, was aware of the deception and refused to make any changes, according to the complaint.
A JustAnswer spokesperson said in a statement that the company has been working with the FTC for nearly three years and is “disappointed” by the lawsuit.
JustAnswer spokesperson Ash Reardon said, “We clearly publish our prices and models up front and make cancellations easy and convenient through multiple channels, including a 24/7 toll-free number, live chat, email, and one click on the web.”
The lawsuit alleges that JustAnswer violates federal consumer protection laws and seeks an injunction against the company.
Just Answer has about 700 employees and has raised about $50 million, according to market intelligence firm Pitchbook.
The alleged method is an example of a so-called “dark pattern.” This is a technical term used to describe companies tricking consumers into signing up for a service and maintaining a subscription.
Former FTC Chair Lina Khan, whose investigators launched an investigation into Just Answer, slammed the companies’ actions. She filed similar lawsuits against big tech companies, including Amazon, which the FTC said violated. deployed A dark pattern that tricks consumers into auto-renewing their Amazon Prime subscriptions.
Lior Strahilevitz, a professor at the University of Chicago Law School who studies dark patterns, said the FTC’s lawsuit highlights a long-standing problem that continues to be prevalent online: overlooking small details before making a purchase.
“The FTC and state attorneys general are suing companies that frequently employ illegal dark patterns,” Strahilevitz said. “However, these dark patterns can be a highly profitable way to deceive consumers, as some consumers are unaware of the charges or do not immediately ask for a refund.”