Doxo Settles FTC Case for $2.1 Million Over Deceptive Advertising
Doxo has agreed to pay a $2.1 million settlement with the Federal Trade Commission (FTC) over allegations of deceptive advertising practices. The company is accused of misleading consumers by falsely representing itself as an official payment channel and failing to disclose subscription terms, leading users into recurring charges without clear consent. The FTC barred Doxo from engaging in several specific behaviors moving forward, including charging customers without their permission or misrepresenting its relationship with billers. As part of the settlement, which was approved by a 2-0 vote at the Commission level and filed in U.S. District Court in Seattle, Doxo must also clearly communicate deadlines for users to stop charges. The case dates back to April 2024 when the FTC first took action against Doxo over its deceptive advertising practices. A federal judge had previously ruled that Doxo violated consumer protection laws by failing to disclose subscription terms and obtaining consent improperly.
Topics: advertising_laws consumer_protection financial_services