Thursday, January 15, 2026- The U.S. Federal Trade Commission (FTC) has filed a lawsuit accusing an artificial‑intelligence‑powered search engine known as Pearl of engaging in “rampant consumer deception.”
According to federal regulators, the company behind the service allegedly lured users through online ads to its AI search tool and then used an assistant chatbot to guide them into signing up for a paid question‑and‑answer subscription. Investigators say this tactic trapped hundreds of thousands of consumers into recurring charges they did not intend to incur.
Investigators outlined how the system worked: users clicking a search ad were directed to one of dozens of domains operated by the company, such as JustAnswer.com and others. The chatbot then followed up on the user’s query and prompted them to submit credit card information for a low initial fee often $1 or $5 before immediately charging significantly higher monthly subscription fees unless the user cancelled. These ongoing charges, reportedly as high as $79 per month, continued until cancellation and were only disclosed in fine print.
Federal authorities allege the company violated consumer protection laws by using deceptive design practices, sometimes referred to as “dark patterns,” which make it difficult for consumers to avoid or exit unwanted subscriptions. The suit also claims that the company’s leadership was aware of the deceptive practices but did not change them. The FTC is seeking an injunction to stop the alleged conduct and protect consumers from further harm.
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