What's Happening?
The Federal Trade Commission (FTC) has filed a lawsuit against JustAnswer LLC, an online question-and-answer service, and its CEO, Andrew Kurtzig. The lawsuit alleges that JustAnswer engaged in deceptive
practices by enrolling consumers in recurring monthly subscriptions without their explicit consent. The FTC claims that JustAnswer violated Section 5(a) of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA) by misrepresenting the terms of a 'one-time join fee' and using a negative option feature to charge consumers. The FTC is seeking injunctive relief and civil penalties for these alleged violations.
Why It's Important?
This lawsuit highlights the FTC's ongoing efforts to protect consumers from deceptive business practices, particularly in the digital marketplace. The case underscores the importance of transparency and consumer consent in subscription-based services. If successful, the lawsuit could lead to stricter enforcement of consumer protection laws and set a precedent for how companies must handle subscription enrollments. This could impact a wide range of businesses that rely on subscription models, prompting them to review and potentially revise their practices to ensure compliance with consumer protection regulations.
