Digital Bill-Payment Specialist Doxo Responds To an FTC Lawsuit Alleging Deceptive Practices

Firing back at a Federal Trade Commission lawsuit alleging deceptive practices in the bill-payment business, doxo Inc. has issued a statement claiming the charges are inaccurate and push a narrative that will prevent bill-payment providers from streamlining the digital bill-payment process.

The FTC lawsuit, filed late last week, charges doxo with using practices designed to dupe consumers “into using its service by disguising itself as their billers’ official payment channel.”

In its statement, issued late Friday, doxo argues that the lawsuit reflects a lack of understanding about bill payments, how those payments are processed and sent to billers, and doxo’s diligence in adhering to regulatory and market standards. 

“For over 14 years, doxo has remained committed to taking the necessary steps to comply with all regulations and exceed market standards for ensuring consumers are protected and empowered throughout the bill-pay experience,” a doxo spokesperson says by email.

“The current U.S. Federal Trade Commission investigation is inaccurate and unjust, pushing forth a narrative that is a monumental step backward from the objective of reducing bill-pay complexity and costs,” the spokesperson continues. “The [FTC’s] complaint indicates a fundamental misunderstanding of the existing bill-pay market and the structural inefficiencies that almost always work against consumers.”

Charges against doxo in the FTC lawsuit include allegations that the company purchased misleading search-engine ads that appear when consumers search online for information about companies to which they owe money, such as utilities. The ads are designed to make consumers think doxo is affiliated with the biller, the FTC alleges.

The FTC further claims that less than 2% of the companies in doxo’s bill-pay network authorize doxo to accept payment on the companies’ behalf.  

“Doxo intercepted consumers trying to reach their billers and tricked them into paying millions of dollars in junk fees,” Samuel Levine, director of the FTC’s bureau of consumer protection, said in a statement. “The FTC will continue to take action when companies use deceptive design tricks to harm consumers.”

Other complaints against doxo in the lawsuit include late payments of bills by doxo on a consumer’s behalf that have in some cases resulted in the consumers having their utility service cut off or an insurance policy lapse.

In addition, the FTC alleges that doxo uses deceptive practices to sign consumers up for its subscription services. The lawsuit further alleges that, until February 2024, doxo automatically checked the box to sign consumers up for its subscription service when they clicked to read a terms-of-service document. The practice stopped after doxo learned of the FTC’s proposed complaint, the FTC’s suit says.

The FTC did not respond to a request for further comment about the lawsuit.