NEWARK
– Vonage Holdings Corp. (“Vonage”)
has agreed to pay New Jersey $45,945 under
a settlement stemming from a Division of
Consumer Affairs investigation, Attorney
General Zulima V. Farber and Consumer Affairs
Director Kimberly Ricketts announced today.
Vonage, a Delaware corporation with an office
in Holmdel, offers local and long distance
phone services. As part of the settlement,
Vonage agreed to comply with state laws,
rules and regulations regarding future sales
and marketing of merchandise including,
but not limited to, the New Jersey Consumer
Fraud Act, the Advertising Regulations and
the Do Not Call Law.
“We
must ensure that consumers are provided
with clear disclosure of all terms and conditions
so they can make informed decisions,”
Attorney General Farber said. “This
agreement will help do just that while also
enforcing the Do Not Call Law and providing
for the resolution of pending complaints.”
To date, Consumer Affairs has received 167
consumer complaints against Vonage concerning
its business practices. Under the settlement,
Vonage has agreed to attempt to resolve
all pending consumer complaints, with each
consumer having the option to submit the
matter to binding arbitration before the
Division’s Alternative Dispute Resolution
(ADR) Unit if the company’s offer
is not acceptable. For the next 12 months,
the Division will forward any additional
complaints it receives to Vonage for resolution.
“We
expect that any company that solicits business
from New Jersey consumers will abide by
all applicable laws and regulations,”
said Director Ricketts. “In this instance,
we are pleased that Vonage has resolved
to abide by our laws, including the Do Not
Call law and the Consumer Fraud Act, in
the conduct of their business with New Jersey
consumers.”
As
part of the settlement, Vonage also agreed
to:
-
not
use any type, size, location, illustration,
graphic depiction or color in any advertisement
or other marketing materials which obscures
terms or conditions;
-
specifically designate within an advertisement
which merchandise has special or limiting
factors relating to price, quality,
condition or availability; and
-
abide
by the Do Not Call Law and pay the required
telemarketer registration fee.
Deputy
Attorney General Jeffrey Koziar represented
the state in this matter.
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