The Federal Trade Commission (FTC) has filed a lawsuit against the artificial intelligence search engine Pearl, also known as JustAnswer, alleging "rampant consumer deception." The complaint states that the company's services are a scheme to enroll consumers into unwanted recurring charges, affecting hundreds of thousands of individuals.
Alleged Deceptive Practices
Federal investigators describe the company's method as follows:
- Users encountering online ads are directed to various company landing pages, including JustAnswer.com, AskWomensHealth.com, and AskALawyer.com.
- An AI chatbot named Pearl engages users with follow-up questions.
- Users are then prompted to join the question-and-answer service for an initial fee of $1 or $5, requiring credit card information.
- Upon providing payment details, JustAnswer reportedly charges both the initial join fee and a higher monthly subscription fee immediately. These monthly fees, which can reach $79, continue until the consumer actively cancels.
- Subscription details are presented in fine print above a "Confirm now" button, a practice the FTC alleges has misled consumers.
The lawsuit indicates that the company's CEO, Andy Kurtzig, was aware of consumer deception and did not implement changes. The investigation into JustAnswer began in 2022.
Company Response
A spokesperson for JustAnswer stated the company is "disappointed" by the lawsuit, noting nearly three years of engagement with the FTC. The spokesperson affirmed that pricing and the subscription model are clearly published upfront, and cancellation is made simple and convenient through various channels, including a 24/7 toll-free number, live chat, email, and one-click web cancellation.
Legal Implications and 'Dark Patterns'
The FTC's suit asserts that JustAnswer has violated federal consumer protection laws and seeks an injunction. The alleged techniques are categorized as "dark patterns," a term for design choices that manipulate consumers into making unintended decisions, such as signing up for or maintaining subscriptions. Former FTC Chair Lina Khan previously initiated similar actions against companies employing dark patterns, including Amazon regarding its Prime subscriptions. Lior Strahilevitz, a University of Chicago Law School expert on dark patterns, highlighted that these practices remain prevalent and profitable despite frequent lawsuits against companies using them.