FTC Sending $100M in Refunds to Victims of Vonage ‘Dark Patterns’ Scheme
The FTC is sending nearly $100 million in refunds to about 389,000 consumers it says were victimized when Vonage imposed junk fees and created obstacles to those who tried to cancel their subscriptions, said the agency Monday. The FTC’s November…
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2022 complaint alleged Vonage used “dark patterns” to make it difficult for consumers to cancel their service and often continued to charge them illegally even after they spoke to an agent directly and requested cancelation, it said. U.S. District Judge Georgette Castner for New Jersey in Trenton signed an order Dec. 9 (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 give consumers a “simple method” to cancel their telephone services (see 2212120007). 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.