Doxo to Pay $2.1M Over FTC Bill-Payment Ad Claims

4 weeks ago Marcus Feld

The FTC says Doxo ran deceptive search ads impersonating billers and charged hidden fees, prompting a settlement requiring consumer redress and business bans.

Online bill payment service Doxo has agreed to pay $2.1 million to resolve Federal Trade Commission allegations that it deceived consumers through misleading advertising and undisclosed fees, according to a report by dailyhodl.com.

The FTC’s 2024 complaint alleged that Doxo ran search ads impersonating official billers for utilities and loans, while displaying logos of companies it had no partnership with. The agency also said the company added hidden delivery fees and enrolled customers in subscriptions without clear consent.

A federal court had previously found that Doxo violated the Restore Online Shoppers’ Confidence Act by failing to properly disclose subscription terms to users.

Under the settlement, the $2.1 million payment will go toward consumer redress. Doxo also faces a permanent ban on misrepresenting its affiliations with billers, using deceptive tactics to collect financial information, and charging consumers without their express consent, per dailyhodl.com.

The FTC’s five-member commission approved the order in a 2-0 vote, and it was filed in the U.S. District Court for the Western District of Washington.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said misleading search text ads undermine consumers’ ability to find accurate information and damage marketplace integrity.

Doxo did not admit or deny the allegations as part of the settlement but said it was pleased to reach a resolution and would continue to focus on serving customers.

Based on reporting by dailyhodl.com.