Vonage once again has found itself paying someone to get out of hot water. This time, the VoIP provider is paying $3 million to 32 U.S. states over a probe into its business practices. In addition, Vonage will refund customers that were affected in these practices.
Legal officials in Idaho, Texas and Maine said that the company fielded multiple complaints over three main issues: the difficulty of canceling their service; a requirement to have a high-speed broadband line to access the service; and the definition of "free" services, money back guarantees and trial service periods.
However, Vonage said it didn't conduct any illegal activities. Vonage added that in an SEC filing that it would make various changes to its business practices. Each of the 32 states will use the $3 million settlement to pay for legal and other related costs, while any other customer refunds will be added to that amount.
This is not the first time Vonage has found itself having pay up for questionable business and technology practices. Back in 2007, Vonage reached settlements with Sprint and Verizon--$80 million and $58 million, respectively--over VoIP patent infringement.
For more:
- Wall Street Journal via AP has this article
Related articles
Vonage posts 3Q loss
Sprint files four more VoIP lawsuits
Vonage Mobile for iPhone and Blackberry now ready for download
Banks slapped with $845K in fines over Vonage IPO