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  • FTC sues AI-powered search service over alleged deceptive billing scheme
    January 13, 2026, 8:36 PM EST. The Federal Trade Commission filed a lawsuit alleging the Pearl AI-powered search service uses deceptive, recurring-billing tactics. Regulators say users are steered from ads to landing pages across domains tied to JustAnswer brands, then prompted to join for $1 or $5 after a chatbot interview. Customers who provide card details face monthly charges that can reach $79 and continue until canceled, with cancellation disclosed only in fine print near a large "Confirm now" button. The complaint says the scheme duped hundreds of thousands and cites the CEO Andy Kurtzig as aware of the deception. JustAnswer counters that pricing is published and cancellation is simple, while the FTC seeks an injunction and civil penalties. The company employs about 700 people and has raised roughly $50 million; the case cites "dark patterns."