A settlement over hard-to-cancel subscriptions would send automatic refunds to harmed customers and require easier cancellation going forward. The Vonage deal set aside $100 million for consumer refunds, with no claim form needed. Vonage sells internet-based phone service billed on a recurring monthly basis. Dark patterns are screen designs and process hurdles that push customers to keep paying.
Official resources:
- Read the official notice from FTC — Use this primary source to verify the official announcement.
- Read the official guidance from FTC — Use this primary source to verify the official guidance.
Table of Contents
- What made cancellation hard?
- Where did the $100 million go?
- How did refunds reach people?
- What changed besides a check?
What made cancellation hard?
The Federal Trade Commission said it sued Vonage on Nov. 3, 2022, in federal court in New Jersey.
The agency alleged the hurdles ran since at least 2015 and kept recurring fees flowing. NJBIZ, describing the complaint, reported customers had to reach a live retention agent to cancel account of the cancellation hurdles. It also reported blocked callbacks, undisclosed early-termination fees, and billing after direct cancellation requests.
Where did the $100 million go?
Under the proposed order, Vonage agreed to pay $100 million to the FTC for consumer refunds. The Federal Trade Commission said the sum would fund refunds in its FTC announcement of the settlement.
The Federal Trade Commission said it began sending more than $99.4 million to 389,106 consumers in October 2023. Those consumers had tried to cancel Vonage or faced fees after cancelling. Payments went out automatically, without a claim form, according to the FTC update on the refunds.
How did refunds reach people?
ConsumerAffairs reported most recipients get a mailed check to cash within 90 days. Eligible consumers without an address on file get PayPal funds to accept within 30 days.
Questions go to refund administrator Epiq at 1-877-525-4728. The process needs no application and no payment to a third party. Act on the deadline tied to your method:.
- Cash a mailed check within 90 days.
- Accept PayPal funds within 30 days.
- Call Epiq at 1-877-525-4728 with questions.
- Never pay anyone to obtain the refund.
What changed besides a check?
The order also requires a simple, easy-to-find cancellation process. The Register reported cancellation by the same method used to enroll, express informed consent before billing, and a ban on dark-pattern interfaces in its account of the required cancellation reforms.
Only FTC-identified harmed subscribers receive payment. ConsumerAffairs reported a median payment of about $197, so others receive only the benefit of easier cancellation. Cash checks quickly and accept electronic funds on time because unclaimed money does not wait.
You Might Also Like
- A Data-Breach Class Seeking Credit-Monitoring Damages: How Would a Settlement Distribute Money or Other Relief?
- A Subscription Service Accused of Making Cancellation Difficult: How Could Plaintiffs Prove Classwide Injury and Damages?
- Untreated Medical Needs in a County Jail: How Do Lawyers Evaluate Settlement Value and Trial Risk?