NJ Phone Services Company Pays $100M Over ‘Junk fees’ Allegations
HOLMDEL — A Monmouth County-based home phone services company has agreed to pay $100 million to settle allegations of deceptive and unfair practices.
The Federal Trade Commission announced that it had taken action against Vonage for charging junk fees and trapping customers into unwanted subscriptions.
Under the terms of the deal, Vonage neither admitted nor denied the allegations, while agreeing to make its process more transparent.
“We're requiring Vonage to simplify its cancellation process and pay $100 million,” FTC Chairperson Lina Khan said on Thursday via Twitter.
Similar allegations were made in 2009, ending in a multi-state settlement.
Vonage agreed to change its policies after New Jersey and 21 other states accused the company of making it difficult or impossible for customers to cancel their service.
Earlier this year, Vonage was bought by Ericsson in a $6.2 billion deal with the Swedish company.
In August, Vonage moved its headquarters within Holmdel from 23 Main Street to the Bell Works campus, as previously reported by Asbury Park Press.
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