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Selected cases

Federal Court of Australia · [2026] FCA 330

TEQSA v Chegg

A Federal Court platform-compliance case about Chegg's paid Expert Q&A service, academic cheating laws and civil penalties.

Federal Court of Australia27 Mar 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Regulated digital services need product controls, not just terms of use.
  • A Federal Court platform-compliance case about Chegg's paid Expert Q&A service, academic cheating laws and civil penalties.

Use this to check

  • Digital platforms can face Australian penalties even when incorporated overseas.
  • Subscription products in regulated sectors need controls inside the service flow.
  • Contractor-delivered outputs can still create risk for the platform operator.

Decision snapshot

  1. 1

    What happened

    • TEQSA brought proceedings against Chegg, Inc, a US-listed company offering online services to students in Australia through a paid subscription called Chegg Study Help.
    • The service included Expert Q&A, which let subscribers submit questions through Chegg's website and receive solutions prepared by experts engaged by Chegg India.
    • Chegg admitted three contraventions of s 114A(3) of the Tertiary Education Quality and Standards Agency Act involving Monash University assessment tasks between November 2021 and May 2022, including Water Surface Profiles, a programming assignment and a Databases electronic examination.
  2. 2

    What the court had to decide

    • The Court had to determine declarations and penalties after Chegg admitted contraventions of s 114A(3) of the TEQSA Act.
    • The issue was whether the agreed facts and proposed penalty were sufficient and whether $500,000 was an appropriate civil penalty for providing or arranging academic cheating services in relation to Australian courses of study.
  3. 3

    What the court decided

    • The Federal Court declared that Chegg contravened s 114A(3) of the TEQSA Act on three occasions, ordered Chegg to pay a $500,000 pecuniary penalty to the Commonwealth within 30 days, and ordered it to pay TEQSA's costs fixed at $150,000.

Practical impact

Practical read

  • Regulated digital services need product controls, not just terms of use.
  • If a platform enables users to buy help that crosses into prohibited conduct, overseas incorporation and third-party contractors will not stop Australian regulators from acting.

Useful next steps

  • Digital platforms can face Australian penalties even when incorporated overseas.
  • Subscription products in regulated sectors need controls inside the service flow.
  • Contractor-delivered outputs can still create risk for the platform operator.
  • Admissions and agreed penalties still require the Court to decide whether the proposed outcome is appropriate.
  • Map where a platform's user journey enters regulated activity.

Practical read

Chegg is a platform-compliance case with a clear lesson for startups and online services. The business model was international, subscription-based and contractor-supported. But the Australian legal question was practical: did the service provide or arrange for an academic cheating service to students undertaking Australian courses?

The Court made declarations based on admitted contraventions and imposed a $500,000 penalty, plus fixed costs of $150,000. The reasons also record why the harm was not limited to the three individual assessments. Monash incurred resources dealing with the misconduct, students faced plagiarism findings, and the integrity of higher education was the statutory concern behind the prohibition.

For business owners, the point is not limited to education. If a digital product operates in a regulated sector, the product flow itself needs compliance controls. Terms, disclaimers and overseas group structure are not enough if the service can be used in a way the law specifically prohibits. Product, legal and operations teams need to know where the legal boundary sits and design the service around it.

Checks to run

Key points

  • Map where a platform's user journey enters regulated activity.
  • Check whether contractors, experts or offshore group companies create Australian compliance exposure.
  • Keep moderation, escalation and product-control records for high-risk services.
  • Do not rely on generic terms if the service can facilitate prohibited conduct.
  • Review sector-specific laws before launching paid digital help, advice or matching services.

Key takeaways

  • Digital platforms can face Australian penalties even when incorporated overseas.
  • Subscription products in regulated sectors need controls inside the service flow.
  • Contractor-delivered outputs can still create risk for the platform operator.
  • Admissions and agreed penalties still require the Court to decide whether the proposed outcome is appropriate.

Related topics

Digital & EcommerceConsumer Law & TradingFranchising & Regulated Industries

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