Thursday, December 14, 2006

Attorney General Abbott Resolves Lawsuit Against Vonage Over Emergency Dialing Service

AUSTIN - Texas Attorney General Greg Abbott today filed an agreed final judgment that protects the safety of an increasing number of Texans who rely upon Internet-based phone service.

In 2005, the Attorney General took legal action against Vonage for its failure to inform consumers that it did not provide traditional 9-1-1 emergency service.

Documents filed in court today establish strict standards requiring Vonage to properly inform its subscribers about critical differences between traditional land-line networks and 9-1-1 service that it provides to those who use its Internet-based phone service, also known as VoIP technology.

"During a moment of crisis, Texans expect to call 9-1-1 and receive emergency service, said Attorney General Abbott. Today’s unprecedented agreement with Vonage ensures that millions of Vonage customers in Texas and across the country are adequately informed about their Internet-based phone service. The Office of the Attorney General remains committed to the health and safety of all Texans."

The Office of the Attorney General filed a lawsuit against Vonage in March 2005 amidst reports that it was misrepresenting to consumers their potential inability to reach emergency dispatchers. At the time, Vonage failed to disclose clearly that customers would not automatically have the ability to dial 9-1-1, but rather had to go through a separate process to activate the 9-1-1 feature.

In one incident, members of a Houston family stated that it was only after intruders entered their home and held them at gunpoint, injuring one, that they realized that dialing 9-1-1 through Vonage would not connect them with a dispatcher who could send police and an ambulance to their home.
Prior to the Attorney General's legal action, Vonage also failed to disclose, or buried in its Web site, important information about the limitations its 9-1-1 service had compared to 9-1-1 service offered by wireline companies. For example, at the time of the lawsuit, 9-1-1 calls made using Vonage's Internet-based telephone service were not directly routed to emergency response personnel through the local 9-1-1 network, but were instead routed to an administrative line.

In some places, these administrative lines were only answered during regular business hours or were answered by an Interactive Voice Response System. Moreover, at the time, Vonage's 9-1-1 service was not able to transmit to the emergency operators the caller's telephone number and location information. Despite these limitations, some of Vonage's promotions touted its "911 dialing" and advertised the service as a "replacement" for wireline phone service.

Immediately following the lawsuit Vonage began to implement clear disclosures of these limitations and improve its 9-1-1 dialing service. The documents filed in court today formalize the way in which the company must conspicuously disclose the limitations of its 9-1-1 service.

Generally, consumers who sign up for Vonage will have to register a physical address which will inform 9-1-1 where the call is originating from. Unlike wireline service, where responders immediately receive address information from where the call is being made, current VoIP technology does not automatically provide that data, which is critical if the person making the call does not know the exact address or is unable to speak.

Vonage must also inform consumers that, since its service is portable, each time they change location users should actively update the address that should be transmitted to dispatchers when 9-1-1 is dialed. Vonage must also disclose that there could be circumstances preventing access to 9-1-1, such as during a power outage or if broadband connection is lost.

Under the terms of the settlement, consumers who sign up online for Vonage service will see a disclosure of the full 9-1-1 limitations that is separate and distinct from other contract terms. They will have to actively check a box indicating that they have understood and accept the differences between Vonage and wireline access to 9-1-1 services.

Texas was the first state to take legal action against Vonage regarding its failure to adequately inform users about 9-1-1 access. Attorney General Abbott's office provided assistance to five other states (Florida, Illinois, Massachusetts, Michigan and North Carolina) who also investigated Vonage and today are filing settlements with the company similar to the one reached by Texas.