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Vonage must refund certain customers
Posted: 11.16.2009 at 2:00 PM
Daye Decker

Daye joined the Pronews 7 team in September of 2006. She began as Daybreak producer, then quickly moved up to 6&10 producer, before taking over as the Interactive Managing Editor.

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Read more: Local, State, Business, Vonage, Refund Customers, Attorney General

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If you were a Vonage customer and tried to cancel your service but were still charged you could be entitled to a refund.

Texas Attorney General Greg Abbott reached an agreement with Vonage Holdings Corp. on Monday.The agreement will provide numerous benefits for the telecommunication firm's customers. Thirty-one other states are parties to the assurance of voluntary compliance, which requires Vonage to implement several customer service improvements.

Since 2002, Vonage has offered a Voice over Internet Protocol (VoIP) service, which allows for telephone voice transmission over a high-speed Internet connection.

But Vonage failed to clearly communicate in its advertising. The company failed to make it clear to prospective customers that they must be equipped with high-speed internet in order to use its service. Many customers, particularly senior citizens, were not clearly informed of this requirement and were unable to use the service. Vonage still required the customers to pay activation/cancellation and return shipping fees for computer related equipment. Today's agreement makes full and clear disclosures a priority requirement.

Vonage's "free trial" or "risk free" offers was misleading. When customers tried to cancel their service at the close of the trial period they had to do so by telephone and receive a "return authorization number" before returning the VoIP computer device. Several customers reported unreasonably long wait times before reaching a company representative.

Vonage continued to charge customers who thought they had cancelled the service. The states' investigation found that Vonage's use of the phrase "free trial" was deceptive.

Despite free service offers, Vonage charged many customers activation fees, shipping and handling fees, taxes, universal service fees, regulatory recovery fees and emergency 911 fees, none of which were clearly disclosed in advance. Today's agreement prohibits future misrepresentations of service by Vonage and requires the company to fully and clearly disclose all terms associated with promotional offers. Vonage must also ensure that customers who accept the free trial offer receive the VoIP computer adapter within the promised seven to 10 days. Under today's agreement, Vonage is also paying refunds to eligible customers who experienced problems and have not already received refunds.

Texans who believe they are entitled to a refund should have previously filed, or file within 120 days, a complaint with the Texas Attorney General's Office. Customers may accomplish this online by accessing the Office of the Attorney General's Web site at www.texasattorneygeneral.gov or call toll-free at (800) 252-8011.