The Federal Court Ruling: A Landmark Penalty Against Chegg

In a significant victory for academic integrity in Australian higher education, the Federal Court of Australia has fined US-based online learning platform Chegg Inc. A$500,000 plus A$150,000 in costs for facilitating academic cheating at Monash University. Delivered on 27 March 2026 by Justice Craig Lenehan in the case Chief Executive Officer of the Tertiary Education Quality and Standards Agency v Chegg, Inc. (2026 FCA 330), the ruling marks the first enforcement of Australia's 2020 anti-contract cheating laws against an international online service provider.

Chegg admitted to three contraventions of section 114A(3) of the Tertiary Education Quality and Standards Agency Act 2011 (TEQSA Act), which prohibits providing or arranging academic cheating services to higher education students. The Tertiary Education Quality and Standards Agency (TEQSA), Australia's independent national regulator for higher education quality, initiated proceedings in October 2024 after receiving intelligence from universities, including Monash. TEQSA CEO Dr Mary Russell emphasized, "Academic integrity is fundamental to the quality and reputation of Australia’s higher education sector."

The penalty, roughly one-third of the maximum possible, reflects Chegg's cooperation, lack of deliberate intent by senior management, and subsequent compliance improvements, such as enhanced expert training and content removal protocols. However, the judge noted the non-quantifiable harm to higher education standards and Australia's international reputation.

Inside the Monash University Cases: Engineering and IT Assessments Compromised

The contraventions centered on three specific instances between November 2021 and May 2022, involving Monash students in the Faculty of Engineering and Faculty of Information Technology. These cases highlight how easily assignment tasks can be outsourced via online platforms.

• 1 November 2021 – FIT2094 Databases (IT Faculty): A student uploaded screenshots of an electronic exam to Chegg's Expert Q&A. An expert provided detailed handwritten and typed answers covering normalization, SQL queries, and entity-relationship diagrams. The student submitted work wholly derived from these answers, later admitting to using Chegg tutors.
• 11-12 January 2022 – FIT1045 Algorithms and Programming Fundamentals in Python (IT Faculty): Another subscriber uploaded a programming assignment on ancestor and cousin degree calculations. Two experts supplied complete Python code solutions. A Monash student accessed and submitted substantially identical work.
• 1-2 May 2022 – CIV2263 Water Systems, Water Surface Profiles Assignment (Engineering Faculty): A student posted the full assessment task. An expert uploaded a handwritten solution calculating hydraulic profiles using HEC-RAS software. The submitted work mirrored this solution.

Monash's assessments explicitly warned against external posting, naming Chegg in some instructions. The university's robust detection systems identified the misconduct, leading to student admissions and reports to TEQSA. While student penalties were handled internally per Monash policy, the case underscores vulnerabilities in technical disciplines requiring computational or design work.

Chegg's Expert Q&A: From Study Aid to Cheating Enabler

Chegg, founded in 2005 and headquartered in California, offers subscription-based study tools including textbook solutions, video explanations, and the controversial Expert Q&A feature at www.chegg.com/study/qa. Subscribers post questions; vetted 'experts' – often from Chegg India, a subsidiary – provide paid answers within hours.

Chegg claims to promote learning with guidelines against aiding dishonesty, but the court found experts acted as agents, producing 'work' – intellectual effort or output – that students submitted as their own. Chegg retained IP rights over answers and profited via subscriptions (US$8.8m Australian revenue in 2022, down to US$2.2m by 2025). Post-pandemic remote learning peaked Chegg's use, but declining subscribers and share price (down 97%) signal market shifts, partly due to AI tools.

Australia's Legal Arsenal Against Contract Cheating

Australia pioneered national contract cheating bans in 2020 via TEQSA Act amendments, criminalizing services offering paid academic work. Unlike student-focused rules, s114A targets providers, with penalties up to 500 units (~A$555k per breach). The laws address a 'serious and growing threat' to higher ed integrity, as per 2019 Explanatory Memorandum, protecting ~1.5 million students and A$50bn sector.

TEQSA's risk-based approach relies on provider reports. This case validates the framework, with Justice Lenehan affirming no need to prove direct student receipt – mere provision suffices.

Monash University: Detection, Discipline, and Prevention

Monash, Australia's largest university with 90,000+ students and top-ranked engineering/IT programs, detected anomalies via plagiarism software and proctoring. Students faced internal sanctions; the university proactively shared intel with TEQSA. A Monash spokesperson noted their 'anti-cheating infrastructure' enabled swift response. Broader strategies include task redesign (e.g., personalized problems), viva defenses, and platform blocks.

Monash's vigilance exemplifies how Group of Eight (Go8) unis lead in integrity, amid pressures from international cohorts (40%+ students).

The Scale of Contract Cheating Across Australian Universities

Surveys estimate 3-15% prevalence, higher in business/engineering (up to 15.7%). QUT audit found 50%+ engineering units compromised on Chegg, with 50% questions answered in 1.5hrs. UNSW reported 209 contract cheating cases in 2024 (down 43% YoY due to AI shift).

International/engineering students overrepresented; social media marketing targets stressed cohorts.

Engineering and IT: Prime Targets for Outsourcing

Technical fields demand code, simulations, designs – ideal for expert replication. QUT researchers Edmund Pickering and Clancy Schuller audited engineering: 'Chegg is broadly used to cheat'. Monash cases align: Python coding, databases, hydraulics.

Challenges: Objective grading, remote exams. Solutions: Randomized inputs, process logs, peer review.QUT Chegg study urges redesign.

Expert Views: Symbolic Win Amid AI Overhang

Deakin's Phill Dawson calls it 'symbolic relevance', deterring platforms as unis pivot from take-home tasks. TEQSA urges reports via teqsa.gov.au. Chegg's decline (subscribers -65%) boosts AI concerns: 83% Aus students use AI, 40% illicitly.

Photo by Tim Mossholder on Unsplash

Implications and Future Safeguards for Australian Higher Ed

This precedent pressures platforms like Course Hero. Unis invest in AI detectors, authentic assessments (e.g., portfolios). Gov't collaborations with tech firms block sites. Outlook: Hybrid threats demand adaptive policies, staff training, ethical AI integration.

For engineering/IT educators: Step-by-step – 1) Watermark tasks; 2) Use proctored viva; 3) Collaborative projects; 4) Honor codes. Stakeholders: Unis report 1000+ cases yearly; solutions yield integrity gains.