Vonage to pay $100 million to settle ‘junk fee’ allegations
On Thursday, the internet-based telecom provider Vonage agreed to pay $100 million to the Federal Trade Commission to settle charges that it created an artificially burdensome process to cancel the service that included hidden termination fees.
In its complaint, the FTC alleged that Vonage, an Ericsson subsidiary, made it easy for consumers to sign up for its services but far more difficult to cancel. Consumers could sign up for service in a variety of ways, including online and over the phone, but Vonage forced customers to speak with a live “retention agent” in order to cancel service.
Additionally, the FTC claimed Vonage purposefully hid the cancellation number on its website, limited the hours these cancellation calls were...