Investigation and pending class action lawsuit against Vonage for using deceptive trade practices in advertising and selling its Internet-based telephone service.
Vonage misleadingly advertised that its Internet-based Voice Over Internet Protocol would provide telephone service equal to that available on traditional landlines and encouraged consumers to try the service by offering a 30-day money back guarantee and advertising that subscription did not require an annual contract. In reality, the 30-day trial period began as soon as the customer signed up for the service even though the service might not be connected for weeks and customers were billed a substantial disconnection fee if they cancelled the service after the 30-day trial period but within the first year of the subscription.
The class action lawsuit also alleges that Vonage placed significant impediments to cancellation, forcing consumers to continue paying for service they did not want.
Name (Stock Symbol)
Vonage Holdings Corporation (VG)
Vonage Holdings Corp., through its subsidiaries, provides broadband Voice over Internet Protocol services.
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