An online bill payment service has agreed to pay $2.1 million to settle federal allegations of using misleading advertisements and deceptive fees. The Federal Trade Commission (FTC) found that Doxo misled consumers with search ads impersonating official billers for utilities and loans, while also adding hidden delivery fees and enrolling users in subscriptions without clear consent.
The 2024 complaint outlined how the company displayed unrelated company logos on its site without actual partnerships with most of them. A federal court previously ruled that Doxo violated the Restore Online Shoppers’ Confidence Act by not disclosing subscription terms to consumers.
As part of the settlement, $2.1 million will be allocated for consumer redress. Additionally, the company will face permanent bans on misrepresenting affiliations with billers, using false claims to obtain financial data, and charging consumers without express consent. The FTC approved the order with a 2-0 vote and filed it in the U.S. District Court for the Western District of Washington.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated, “Misleading search text ads thwart consumers’ pursuit of information and undermine the integrity of the marketplace.” While the company did not admit or deny the allegations, they expressed satisfaction with reaching a resolution and emphasized their commitment to prioritizing customer needs.
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