Judge Orders Vonage to Pay $100M Judgment for Unfair Billing Practices
U.S. District Judge Georgette Castner for New Jersey signed an order Friday (docket 3:22-cv-06435) directing Vonage to pay the FTC a $100 million monetary judgment within seven days to settle allegations it committed unfair acts or practices by failing to…
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give consumers a “simple method” to cancel their telephone services. The agency also accused Vonage of failing to disclose “material transaction terms” before obtaining consumers’ billing information, and alleged the company imposed fees without customers’ consent. The court ordered Vonage to install a “simple mechanism” for consumers to avoid being charged for goods and services and to immediately stop any recurring charges. The mechanism must be easy to find and use, and “not require the consumer to take any action that is objectively unnecessary” to cancel a charge, said Castner’s order.