JustAnswer to pay $10m in penalties for misleading pricing representations and misleading affiliation claims
The development
The Federal Court has ordered JustAnswer LLC to pay 10 million dollars in penalties following proceedings brought by the ACCC over misleading pricing and affiliation representations made to Australian consumers of its online question and answer service. From around November 2022 to August 2025, a chat widget on JustAnswer's website told consumers it was sending them to join the service for 2 Australian dollars, described as fully refundable, when in fact consumers who joined were signed up to an ongoing subscription costing between 45 and 75 dollars a month. The Court also found that, from June 2022 to February 2024, JustAnswer falsely represented that it was approved by or affiliated with the Fair Work Ombudsman.
The ACCC commenced the proceedings in September 2025 after receiving numerous consumer complaints. In addition to the penalty, the Court ordered JustAnswer to refund affected Australian consumers who were misled into believing the service cost 2 dollars but were instead enrolled in the higher cost ongoing subscription. ACCC Commissioner Luke Woodward described the conduct as a serious breach of the Australian Consumer Law and said the regulator would continue to act against businesses that mislead consumers into subscription arrangements they did not intend to enter.
The decision is a final Federal Court order following admitted or established contraventions, not merely an allegation, and provides a clear signal to online subscription based businesses about the risks of low headline prices that convert to significantly more expensive ongoing charges, and of claiming affiliation with a government body without basis. It is relevant to any business operating a trial to subscription or similar pricing model directed at Australian consumers.
The briefing
- Regulator or source
- ACCC
- Type
- Enforcement
- Subject matter
- Commercial, corporate & consumer
- Jurisdiction
- Cth
- Published
- 8 July 2026
- Submissions close
- No deadline
- Reference
- 76/26
- Priority
- Medium
What it means for business
Businesses operating a trial, introductory or low headline price that converts to an ongoing subscription may wish to review how the full ongoing price, billing frequency and any renewal terms are disclosed to a consumer before they commit to sign up, given the scale of penalty imposed here for a 2 dollar to 45 to 75 dollar a month conversion that was not adequately disclosed upfront. It may also be worth checking that no marketing material, including automated chat tools, implies affiliation with or approval by a government agency or ombudsman unless that affiliation genuinely exists.
Entry last reviewed 9 October 2026.
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