Vonage to pay $100m for making it nearly impossible to cancel internet phone services
Vonage has agreed to cough up $100 million to customers for making it nearly impossible to cancel their internet phone service, according to a proposed court order., which provides Voice over Internet Protocol to folks and small businesses, automatically bills customers for these services every month, according to a US Federal Trade Commission complaint. These bills range from $5 to $50 for consumers, and businesses pay upwards of thousands of dollars each month.
For example, Vongage requires customers that want to cancel their phone bill to speak to a live"retention" agent during limited hours and"obscured contact information" to reach an operator, the FTC said. While on the phone with a Vonage agent, customers"faced redundant procedural requirements, long wait times, dropped or unanswered calls, lengthy and repeated sales pitches, and unexpected high-dollar early termination fees," according to the complaint.
These include providing a simple cancellation process that is easy to find and use, and being upfront about subscription plans and"negative options" — this happens when a customer agrees upfront to certain services, the provider then starts adding new ones, and treats the consumer's failure to reject the services or cancel the agreement as consent to be charged.
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