An online bill payment service is agreeing to pay $2.1 million to settle federal allegations that it used misleading advertisements impersonating billers and charged deceptive fees.
The Federal Trade Commission (FTC) says that Doxo deceived consumers through search ads that impersonated official billers for utilities and loans while adding hidden delivery fees and enrolling users in subscriptions without clear consent.
The 2024 complaint detailed how the firm often displayed unrelated company logos on its site despite lacking partnerships with most of them.
A federal court previously ruled the company violated the Restore Online Shoppers’ Confidence Act by failing to disclose subscription terms.
Under the settlement, $2.1 million will fund consumer redress.
The company faces permanent bans on misrepresenting affiliations with billers, using false claims to obtain financial data, and charging consumers without express consent.
The FTC approved the order in a 2-0 vote and filed it in the U.S. District Court for the Western District of Washington.
Says Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection,
“Misleading search text ads thwart consumers’ pursuit of information and undermine the integrity of the marketplace.”
The company did not admit or deny the allegations but stated it is pleased to reach a resolution and will continue focusing on customers.
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