FTC Sends Nearly $100 Million in Refunds to Vonage Consumers Who Were Trapped in Subscriptions By Dark Patterns and Junk Fees (2024)

FAQs

FTC Sends Nearly $100 Million in Refunds to Vonage Consumers Who Were Trapped in Subscriptions By Dark Patterns and Junk Fees? ›

FTC sends refunds to eligible Vonage customers

FTC sends refunds to eligible Vonage customers

The FTC is sending payments totaling more than $99.4 million to 389,106 people who tried to cancel or were charged fees after cancelling their Vonage account.

Whenever there's an FTC refund program, information is available at ftc.gov/refunds. Click on a case name to see more details about the refund program, including whether we sent checks, debit cards, Zelle payments, or PayPal payments. Scammers sometimes send emails that pretend to be from the FTC or a company you know.

Privacy & Information Security Law Blog

Vonage and the FTC subsequently reached a settlement where Vonage agreed to pay $100 million in refunds to consumers harmed by the company's actions, implement a simple and transparent cancellation process, and stop charging consumers without their consent.

Consumers who have questions about their payment should contact the refund administrator, Epiq, at 1-877-525-4728 or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

On 22 November 2021, it was announced that Vonage would be acquired by Ericsson in a US$6.2 billion all-cash purchase. The acquisition was completed on 21 July 2022.

FTC court orders typically require the company to provide a list of customers, their contact information, and how much each customer paid. If the agency obtains a reliable list of eligible recipients, then the agency mails checks or sends electronic payments directly to them.

So, what should you look for if you're concerned your refund check isn't real? All U.S. Treasury checks have a watermark that reads “U.S. Treasury” which can be seen on the front and back of the check when held up to light.

Refund scams involve a criminal tampering with a POS (point of sale) terminal so it sends them an unwarranted refund. Many scammers carry out refund scams in person, where they're able to distract and manipulate their targets, namely whoever is operating the POS.

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Why would the FTC send me a letter? ›

The purpose of FTC warning letters is to warn companies that their conduct is likely unlawful and that they can face serious legal consequences, such as a federal lawsuit, if they do not immediately stop.

As soon as you think you see a scam, talk with someone, and then tell the FTC. Go to ftc.gov/complaint to file your report.

The Federal Trade Commission (FTC) is sending out almost $100MN in refunds to Vonage consumers after denouncing the vendor for “junk fees” and “illegal dark patterns” in November 2022. Those dark patterns include actions that made it difficult for consumers to cancel their subscriptions.

Case Summary

In November 2022, the FTC announced it stopped internet phone service provider Vonage from taking consumers' money without their consent and creating obstacles to those who try to cancel their service.

Measured against those disasters, Ericsson's $6.2 billion move for Vonage, a pioneer of Internet telephony, is less easy to condemn.

After the investigation, Vonage reached a settlement with the government agency to pay up, and – one year later – those refund payments will reach the 389,106 affected consumers. Now, Vonage must also ensure its cancellation process is “simple and transparent” and “stop charging consumers without their consent”.

So, what should you look for if you're concerned your refund check isn't real? All U.S. Treasury checks have a watermark that reads “U.S. Treasury” which can be seen on the front and back of the check when held up to light. If you can see “U.S. Treasury” without holding up the check to the light, it may be fraudulent.

Money Back GuaranteeAll new Vonage accounts come with a 30 day Money Back Guarantee. Email, Phone Calls and Identity TheftPhishing is a fraudulent activity in which email messages or phone calls are used to acquire sensitive information such as usernames, passwords, and credit card numbers.

Contact the company or bank that issued the credit card or debit card. Tell them it was a fraudulent charge. Ask them to reverse the transaction and give you your money back. Did a scammer make an unauthorized transfer from your bank account?