Vonage Will Pay $100 Million to Settle FTC Allegations of Trapping Consumers in Subscriptions

Ericsson subsidiary Vonage will pay $100 million to settle Federal Trade Commission allegations that it created a web of obstacles for its customers to cancel the internet-based telephone service and charged unexpected termination fees. From a report: The agreement, filed in a federal court Thursday, represents the largest settlement of its kind in the FTC's enforcement push against companies that allegedly throw up high hurdles to customers seeking to cancel subscriptions or services. New Jersey-based Vonage will be required to obtain consumers' express consent for services and simplify its cancelation process. The cost of a subscription ranged from $5 to $50 a month for consumers, and potentially thousands a month for businesses, the FTC said. The commission said it received hundreds of complaints from consumers about Vonage's tactics.

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