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Vonage Settles New Jersey Charges

July 20, 2006

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Vonage has agreed to pay New Jersey $45,945 under a settlement stemming from a Division of Consumer Affairs investigation.

As part of the settlement, Vonage agreed to comply with state laws, rules and regulations regarding future sales and marketing of merchandise including, but not limited to, the New Jersey Consumer Fraud Act, the Advertising Regulations and the Do Not Call Law.

"We must ensure that consumers are provided with clear disclosure of all terms and conditions so they can make informed decisions," Attorney General Zulima V. Farber said. "This agreement will help do just that while also enforcing the Do Not Call Law and providing for the resolution of pending complaints."

To date, New Jersey Consumer Affairs has received 167 consumer complaints against Vonage concerning its business practices.

Under the settlement, Vonage has agreed to attempt to resolve all pending consumer complaints, with each consumer having the option to submit the matter to binding arbitration before the division’s Alternative Dispute Resolution (ADR) Unit if the company’s offer is not acceptable. For the next 12 months, the division will forward any additional complaints it receives to Vonage for resolution.

"We expect that any company that solicits business from New Jersey consumers will abide by all applicable laws and regulations," said Consumer Affairs Director Kimberly Ricketts. "In this instance, we are pleased that Vonage has resolved to abide by our laws, including the Do Not Call law and the Consumer Fraud Act, in the conduct of their business with New Jersey consumers."

As part of the settlement, Vonage also agreed to:

• not use any type, size, location, illustration, graphic depiction or color in any advertisement or other marketing materials which obscures terms or conditions;

• specifically designate within an advertisement which merchandise has special or limiting factors relating to price, quality, condition or availability; and

• abide by the Do Not Call Law and pay the required telemarketer registration fee.

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