Arizona Attorney General
Terry Goddard Announces $3 Million Settlement with VONAGE
Attorney General Terry Goddard announced a $3 million, multi-state settlement with VONAGE, one of the nation’s largest providers of an Internet-based phone service known as “Voice over Internet Protocol.”
The settlement requires VONAGE to make significant changes to its marketing practices, to honor consumer cancellation requests and provide refunds to eligible customers.
The settlement addresses complaints of consumers who said they had difficulty or complete inability to cancel their VONAGE service. VONAGE formerly paid incentives to customer service representatives for retaining or “saving” customers in lieu of cancellation when consumers called to cancel. As a result, consumers reported that cancellation was extremely difficult and sometimes impossible. Today’s agreement puts strict limitations on this practice and requires recording and verification of these telephone calls.
The settlement also addresses a number of other marketing practices, which have led to consumer confusion over the cost of VONAGE equipment and service. Under the agreement, VONAGE will be revising its disclosures regarding the offer of “free” services, money-back guarantees and trial periods.
Further, the settlement puts in place a broad restitution plan requiring VONAGE to make refunds to eligible consumers who filed complaints regarding unauthorized charges from January 2004 to March 16, 2010, which have not been resolved.
“We cannot allow companies to ignore their customers’ legal rights,” Goddard said. “Consumers must be treated with decency and not put off or prevented from canceling their phone service.”
Your complaint must be received by March 16, 2010.
Goddard was joined by 31 other state Attorneys General in this settlement.
VONAGE ASSURANCE OF VOLUNTARY COMPLIANCE.pdf
Vonage Settlement Release.html
602.542.5763 (Phoenix)
520.628.6504 (Tucson)
800.352.8431 (Toll free in state but outside of metro Phoenix and Tucson areas)
