Signal company

NJ telephone service company pays $100 million over ‘unwanted charges’ allegations

HOLMDEL – A Monmouth County-based home phone service 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 unwanted fees and tricking customers into unwanted subscriptions.

Under the terms of the agreement, Vonage has neither admitted nor denied the allegations, while agreeing to make its process more transparent.

“We’re asking Vonage to simplify its cancellation process and pay $100 million,” FTC Chairman Lina Khan said Thursday via Twitter.

Former Vonage Headquarters on Main Street in Holmdel (Google Maps)

Former Vonage Headquarters on Main Street in Holmdel (Google Maps)

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 acquired by Ericsson in a $6.2 billion deal with the Swedish company.

In August, Vonage moved its headquarters to Holmdel from 23 Main Street to the Bell Works campus, as Asbury Park Press previously reported.

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