FTC Proposes $100 Million Action Against Vonage

Why This Privacy Law is Important:

The FTC is taking a much more aggressive approach toward enforcing privacy regulations of all sorts, including obtaining and managing consumer consent. Its November proposed court order against Vonage, an internet phone service provider, takes aim at deceptive dark patterns, negative-option consent, and undisclosed fees.

Overview:

On November 3, 2022, the Federal Trade Commission released its proposed court order against Vonage, a Voice-over-Internet-Protocol (VoIP) phone service, to stop the company from imposing junk fees and creating obstacles to consumers and businesses who wish to cancel their service. The order alleges that Vonage:

• Employed dark patterns to make it difficult for users to cancel their service
• Limited the means to cancel service and imposed additional barriers to access agents capable of cancelling services
• Imposed undisclosed fees on users who cancelled
• Continued to charge users who had cancelled their services

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