WASHINGTON, D.C. — Online bill-payment company Doxo has agreed to pay $2.1 million to resolve Federal Trade Commission allegations that it impersonated legitimate billers through search advertisements, imposed undisclosed fees and enrolled consumers in recurring subscriptions without adequate consent.
The proposed settlement, filed in federal court in Washington state, would direct the money toward consumer compensation and impose restrictions on Doxo and co-founders Steve Shivers and Roger Parks.
The FTC alleged in a 2024 complaint that Doxo used advertisements and landing pages displaying companies’ names and, in some cases, their logos to present its third-party payment platform as an official channel for paying utility bills, car loans and other obligations.
The company had no relationship with the overwhelming majority of businesses it portrayed as members of its payment network, according to the complaint.
Consumers who used the platform were charged additional “delivery fees” that were not clearly disclosed, the FTC alleged. The agency also accused Doxo of misleading customers about its subscription pricing and failing to explain that delivery fees were waived only for certain payment methods.
A federal court found that Doxo violated the Restore Online Shoppers’ Confidence Act by failing to clearly disclose subscription terms and obtain consumers’ consent before imposing subscription charges.
Under the proposed order, Doxo and its co-founders would be prohibited from misrepresenting relationships with billers or using a biller’s name or logo in ways that falsely suggest an affiliation.
They also would be barred from using a biller’s website address in search advertisements and from misrepresenting payment amounts, service fees or the total cost of using the platform.
The settlement would further prohibit the defendants from obtaining customers’ financial information through false representations or charging consumers without their express informed consent.
For subscription programs and other arrangements that charge customers unless they cancel, the defendants would be required to disclose when charges will occur, their amounts and the deadline for preventing or stopping them.
“Misleading search text ads thwart consumers’ pursuit of information and undermine the integrity of the marketplace,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated.
The commission approved the proposed settlement by a 2-0 vote. The order will become legally binding if approved and signed by a judge in the U.S. District Court for the Western District of Washington.
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