Vonage called to account over cancellation fees

 

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By Barry Collins

Posted on 12 Nov 2008 at 09:53

VoIP provider Vonage has been reprimanded by the Advertising Standards Authority (ASA) for claiming its service had "no tie-ins" despite the existence of a cancellation charge.

The adverts attempted to put clear water between the Vonage service and regular landline and mobile networks, which normally tie people to lengthy contracts when they sign up.

The advert claimed: "There are no tie-ins, just unlimited calls to the UK and countries like the USA, Australia and Spain for just £7.99 a month".

The small print did mention that a "disconnection fee applies in first year". This amounted to a £23.99 charge if customers ended their month-to-month contract within the first year, although the exact amount wasn't mentioned.

A solitary viewer complained that the disconnection fee contradicted the "no tie-ins" claim, and the ASA agreed.

The watchdog claimed the disconnection fee was a "significant obligation" on Vonage customers. "We acknowledged that it was possible to use Vonage's service on a month-to-month basis without the need to sign up to a minimum-term contract," the ASA adjudication reads. "We considered, however, that the claim 'no tie-ins' implied that consumers would be able to cancel the advertised service at any time without obligation."