Misleading Pricing and Misleading Sign-Up Practices: FTC vs. JustAnswer and Deceptive AI Search Engine Tactics

Online transactions should be transparent and fair—but not all companies adhere to the law. In early 2026, the Federal Trade Commission (FTC) filed a lawsuit against the online advice platform JustAnswer, alleging that the company used misleading pricing and misleading sign-up practices to enroll consumers in costly recurring subscriptions without clear consent.

The case highlights not only subscription billing concerns, but also emerging issues with how AI-powered search and sign-up interfaces are used to gather personal and payment information. This advisory is designed to help consumers understand deceptive tactics and what to do if they’ve been affected.

Misleading Pricing: When the Price Isn’t What It Seems

Misleading pricing happens when a company advertises a low upfront cost but hides or minimizes additional fees associated with the purchase. In the FTC’s complaint, consumers were drawn in by a seemingly small one-time cost — sometimes as little as $1 or $5 — but then automatically enrolled in higher-priced monthly subscriptions ranging from about $28 to over $100 per month.

This kind of pricing is misleading when the true cost isn’t clear at the moment a consumer makes a payment decision. Federal law requires that material pricing terms be disclosed clearly and conspicuously before payment information is collected.

Misleading Sign-Up Practices: How Design Can Deceive

Even with accurate pricing information somewhere on a webpage, the way information is presented can mislead users. Misleading sign-up practices include:

• Placing critical subscription details in tiny text

• Burying recurring billing disclosures below the payment button

• Using language or interface flows that imply a one-time purchase

These tactics may prevent consumers from realizing they are agreeing to recurring charges — which can lead to surprise charges and financial harm.

How AI Search Engine Interfaces Can Contribute to Misleading Practices

A newer and increasingly significant concern involves the role of AI-powered search engines and chat interfaces in the consumer journey. Many modern websites — including service platforms like JustAnswer — integrate AI tools that guide users through a series of questions, answers, or prompts in natural language.

While such technologies can make interfaces feel conversational and helpful, they also raise the risk of AI-assisted misleading practices, especially when:

1. AI Prompts Encourage Quick Sign-Ups Without Full Disclosure

AI chat systems may ask users for information and then quickly lead them toward entering payment details. If critical terms — like recurring fees — are not clearly reiterated during this process, users may complete sign-up without understanding what they’re agreeing to.

For example, a user might click through a series of friendly, natural language responses before being asked to “confirm payment.” If the chat flow includes subscription terms only on a separate part of the page in small print, a consumer may think they are authorizing a one-time service.

2. AI Language Can Create False Impressions of Cost or Time

AI interfaces sometimes describe pricing in conversational terms (“pretty affordable,” “just a small fee to get started”), which can unintentionally minimize the significance of recurring costs. Without clear, factual pricing statements presented at the point of decision, consumers can be misled about the real financial commitment.

3. AI Query Flows Can Mask Material Terms

AI systems often focus on answering user queries rather than highlighting contract terms. If an AI is focused on answering questions like “How much does it cost?” but then doesn’t clearly state the subscription structure that follows, a consumer may not have a full picture of what they will pay.

This becomes especially problematic when sign-up buttons or confirmation prompts are embedded in conversational language that doesn’t reiterate terms clearly before finalizing enrollment.

Why AI Interfaces Can Amplify Misleading Practices

AI search and chat features can make misleading pricing and sign-up practices worse because they:

• Speed Up the Decision Process: Users may proceed through conversational flows more quickly than traditional forms.

• Create a False Sense of Understanding: Conversational responses may lull users into thinking they have been fully informed.

• Separate Key Information From Decision Points: If pricing details are not built into each relevant prompt, consumers may miss them altogether.

Even though AI tools can be helpful, companies must ensure that important terms aren’t sidelined in the conversational experience.

What Consumer Law Requires

Both misleading pricing and misleading sign-up practices can violate consumer protection laws when they hide or downplay critical information about costs or billing terms. Federal law requires:

• Clear and conspicuous disclosure of all material pricing terms

• Affirmative express consent before charging for recurring services

Even if an AI interface provided some information earlier in a session, a consumer must still be fully informed at the actual point of payment.

Consumer Impact: Surprise Charges and Confusion

Consumers who encounter misleading pricing and sign-up practices may face:

• Recurring charges they did not expect

• Difficulty canceling subscriptions

• Confusion about what they agreed to pay

• Frustration with support processes

Surprise charges can accumulate quickly and cause financial stress — especially when they continue month after month.

How to Spot Misleading Pricing and Sign-Up Tactics

Here are some red flags to watch for:

• Unusually low advertised prices that exclude clear details about future charges

• Payment screens that don’t restate recurring costs

• Chatbot or AI flows that lead to payment without clear cost confirmation

• Tiny text disclosures that are hard to read or located far from the payment button

Whenever pricing or recurring billing is unclear, it’s a good idea to pause, look for detailed terms, and decide whether to proceed.

What You Can Do If You’ve Been Misled

If you believe you were signed up for recurring charges through misleading pricing or misleading sign-up practices:

1. Save all confirmation emails, receipt pages, and screenshots

2. Check your credit card or bank statements for recurring charges

3. Try cancelling the subscription and record all contacts

4. Dispute unauthorized or unclear charges with your financial institution

5. Talk to a consumer protection attorney

Why Hire The Lyon Firm for Consumer Protection Cases

When consumers are taken advantage of by misleading pricing or misleading sign-up practices — especially when AI interfaces are involved — legal help can level the playing field. The Lyon Firm holds companies accountable for deceptive practices and protecting consumer rights.

Experience in Consumer Protection Law

The Lyon Firm’s attorneys understand federal and state laws designed to protect consumers from deceptive pricing, hidden subscriptions, and unfair online billing tactics.

Experience Handling Complex Digital Claims

Online sign-up flows, especially those involving AI-driven interfaces, can be complicated. The Lyon Firm has experience unraveling these tangled contracts and presenting clear cases on behalf of clients.

Personalized, Client-Focused Representation

Every situation is different. The Lyon Firm provides clear guidance, honest assessments, and strong advocacy tailored to each client’s circumstances.

Strategic and Effective Advocacy

Whether through negotiation, arbitration, or litigation, The Lyon Firm works to recover refunds, damages, and other remedies for consumers harmed by unlawful practices.