An artificial intelligence-powered search engine called Pearl, operated by JustAnswer, is at the center of a lawsuit filed by the Federal Trade Commission (FTC). The FTC accuses the company of deceiving consumers into unwanted subscriptions through misleading practices. Users who click on related online ads land on various domains and are prompted to pay a low initial fee, only to face monthly charges that can reach $79 unless canceled.
The lawsuit claims that these tactics, described as “dark patterns,” have affected hundreds of thousands of consumers, leading to numerous complaints about the company’s practices. JustAnswer’s CEO, Andy Kurzig, is accused of being aware of the deceptive methods. In response, the company stated it has been cooperating with the FTC and claims to clearly communicate pricing and cancellation options.
The FTC’s action highlights ongoing concerns about consumer protection, particularly regarding companies employing deceptive practices to retain subscriptions. Former FTC officials and legal experts emphasize that such tactics are prevalent online, trapping consumers unaware of hidden fees and challenges in canceling services.
Source link
