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"
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.
The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.
$2.5B
A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.
$225.0M
The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.
$100.0M
FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.
FTC staff published FAQs on price transparency to help the automobile industry comply with the FTC Act, reiterating that an advertised vehicle price must be the actual price any consumer can pay, excluding only government-required charges. The guidance follows warning letters the FTC sent to 97 auto dealership groups earlier in 2026 and signals continued litigation against dealers that advertise one price but charge more through undisclosed fees. No specific entity was charged and no penalty was imposed.