Bill Payment Firm Doxo to Pay $2.1 Million to Settle FTC Allegations It Deceived Consumers and Charged Them Add-On Fees
Doxo agreed to pay $2.1 million to settle FTC charges that it used deceptive ads to mimic billers and added undisclosed fees to consumer payments.
Doxo, a bill payment platform, will pay $2.1 million to resolve Federal Trade Commission allegations that it misled consumers through search ads designed to appear as official biller websites. The FTC complaint, filed in 2024, accused Doxo and co-founders Steve Shivers and Roger Parks of impersonating utility and loan companies to trick users into using their service. The ads often displayed other companies’ names or logos without their consent or affiliation, according to the agency.
The FTC alleged that Doxo added undisclosed “delivery fees” to bills paid on behalf of consumers, which were not clearly disclosed during the payment process. The company also enrolled users in a recurring subscription program without making the terms or costs transparent. The FTC stated that delivery fees were waived only for specific payment methods, a detail often omitted from disclosures. Consumers were not adequately informed about subscription pricing or consent requirements.
A federal court found Doxo in violation of the Restore Online Shoppers’ Confidence Act for failing to disclose subscription terms and obtain proper consent for charges. The proposed settlement requires Doxo to pay $2.1 million, which will be used for consumer redress. The order also prohibits Doxo, Shivers, and Parks from engaging in similar deceptive practices in the future.
The Commission voted 2-0 to approve the stipulated final order, which was filed in the U.S. District Court for the Western District of Washington. The FTC emphasized its commitment to protecting consumers from deceptive practices, particularly in digital marketplaces where hidden fees and misleading ads are prevalent.