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Vonage to Pay the FTC $100M

Communications firm Vonage agreed to pay $100 million to resolve a Federal Trade Commission (FTC) lawsuit that alleged it had failed to provide a simple method for customers to cancel their telephone services and imposed “junk fees,” the agency said.

Vonage, which was acquired by Ericsson (BS:ERICAs) earlier this year in a $6.2 billion deal, had created significant obstacles to deter and prevent customers from stopping recurring charges, the FTC said in a lawsuit and proposed settlement in U.S. District Court in New Jersey.

Vonage on Thursday said it was “in the best interests of our customers, partners and employees to come to a settlement.”

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