Online bill payment company Doxo will pay $2.1 million to settle Federal Trade Commission allegations that the firm and two of its co-founders deceived consumers through misleading search advertisements and undisclosed fees, according to an official FTC announcement.
FTC Says Doxo Ads Made Its Service Look Like an Official Payment Channel
The FTC’s 2024 complaint alleged that Doxo and co-founders Steve Shivers and Roger Parks used search ads and other advertisements to trick consumers into using Doxo’s third-party bill payment platform by disguising it as the official payment channel for utilities, car loans, and other bills. The company’s landing pages frequently displayed other companies’ names and sometimes their logos, according to the FTC. The agency alleged that Doxo did not have a relationship with the overwhelming majority of the companies it claimed were part of its payment network.
The FTC further alleged that Doxo added undisclosed “delivery fees” to consumers’ bills without clear disclosure. The company also allegedly enrolled consumers in a recurring subscription program deceptively — failing to clearly and conspicuously disclose that delivery fee waivers applied only to certain payment methods and failing to clearly disclose the subscription’s price.
A federal court found, at the FTC’s request, that Doxo violated the Restore Online Shoppers’ Confidence Act by failing to clearly disclose subscription terms and failing to obtain consumers’ consent for subscription charges.
$2.1 Million Will Be Used for Consumer Redress
Under the proposed settlement order, the $2.1 million Doxo pays will be used for consumer redress. Doxo, Shivers, and Parks will also be prohibited from certain conduct, according to the announcement, though the specific prohibitions were not fully detailed in the released text. The Commission approved the stipulated final order by a 2-0 vote. The FTC filed the proposed order in the U.S. District Court for the Western District of Washington. Stipulated final orders carry the force of law once approved and signed by the District Court judge.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated that misleading search ads undermine the marketplace and that the action reflects the agency’s commitment to stopping deceptive search advertising so consumers can avoid hidden fees and make informed decisions.
Before paying a bill through a search result, consumers can check whether they are actually on the biller’s official website or using an authorized payment provider. Pay attention to the web address, review the total payment amount for added fees, and read any subscription language before submitting payment information. A search advertisement appearing above other results does not, by itself, mean the advertiser is the company you were searching for.
Consumers who believe they may have been affected by Doxo’s billing practices should verify their specific situation directly with the FTC at ReportFraud.ftc.gov or consumer.ftc.gov, as individual circumstances can vary.
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Amanda Blankenship is the Chief Editor for District Media. With a BA in journalism from Wingate University, she frequently writes for a handful of websites and loves to share her own personal finance story with others. When she isn’t typing away at her desk, she enjoys spending time with her daughter, son, husband, and dog. During her free time, you’re likely to find her with her nose in a book, hiking, or playing RPG video games.