Doxo Settles FTC 'Junk Fee' and Misleading Ad Complaint for $2.1M
The FTC's settlement with online bill-pay service Doxo signals a continued crackdown on misleading search ads, hidden 'junk fees,' and deceptive subscription models.
Online bill payment company Doxo will pay $2.1 million and is subject to strict marketing prohibitions to settle an FTC complaint alleging deceptive practices. The FTC claimed Doxo and its co-founders used misleading search advertisements, including billers' names and logos, to impersonate official payment channels. The complaint also focused on the company adding undisclosed 'junk fees' to transactions and deceptively enrolling consumers into a recurring subscription service.
This settlement is a significant warning for all consumer-facing businesses, particularly in fintech and e-commerce. It highlights the FTC's aggressive enforcement posture against so-called 'dark patterns,' misleading affiliate marketing, and lack of fee transparency. A federal court had already found the company violated the Restore Online Shoppers’ Confidence Act (ROSCA) for its subscription practices. The consent order now provides a clear list of prohibited conduct that sophisticated counsel can use to audit their own clients' online checkout and advertising flows for compliance risk. Firms should monitor the FTC’s continued focus on junk fees and negative-option billing.