The Federal Trade Commission (FTC) has reached a settlement with Doxo, an online bill payment firm, requiring the company to pay $2.1 million. This settlement addresses allegations that Doxo and its co-founders, Steve Shivers and Roger Parks, engaged in deceptive advertising practices that misled consumers about their services and fees.

According to the FTC's complaint, Doxo used misleading search ads to impersonate official billers, tricking consumers into using its platform for utility and loan payments. The ads often featured the names and logos of other companies without any legitimate affiliation, leading consumers to believe they were using an official payment channel.

Additionally, the FTC alleged that Doxo imposed undisclosed 'delivery fees' on consumers' bills and enrolled them in a recurring subscription program without clear consent. The company failed to adequately disclose the conditions under which delivery fees would be waived and the costs associated with the subscription.

FTC Director Christopher Mufarrige emphasized the importance of transparency in advertising, stating that misleading ads undermine consumer trust and market integrity. The settlement prohibits Doxo from misrepresenting its affiliations with billers and requires clear communication regarding fees and subscription terms.

The stipulated final order, which has the force of law upon court approval, was filed in the U.S. District Court for the Western District of Washington. The FTC's Bureau of Consumer Protection led the investigation, with key staff members including James Doty, Wendy Miller, and Edward Smith.