BOISE — Idahoans who experienced difficulties canceling their Vonage Voice over Internet Protocol service may be eligible for refunds as part of a $3 million, 32-state settlement, Attorney General Lawrence Wasden said Monday.

The amount of each refund would be determined by the number of claims in the case, attorney general spokesman Bob Cooper said. He said the attorney general's office would have to wait and see how many people filed complaints before knowing how many people could get refunds.

The settlement with Vonage also requires the company to make significant changes to its marketing practices and honor consumer cancellation requests.

"The basic issue is that people tried to cancel (their service) and they were pressured to keep (it)," Cooper said.

Vonage released this statement about the settlement: "Vonage fully cooperated in the investigation and, as part of the settlement, has agreed to maintain or implement enhancements to its business practices that will improve customer experience and satisfaction, many of which the company implemented prior to completion of the settlement."

The settlement requires Vonage to make refunds to eligible consumers with unresolved complaints dating back to January 2004. In order to be considered for a refund, consumers must file a written complaint with the Attorney General's Office by March 16, 2010. Complaint forms are available on the Attorney General's Web site at www.ag.idaho.gov or by calling 208-334-2424 or 800-432-3545.

Vonage previously paid incentives to its customer service representatives if they could convince customers not to cancel their accounts. Customers reported that the pressure Vonage placed on them to maintain service made it difficult for them to cancel.

"When a contract allows a consumer to cancel within a certain time period, consumers have a right and are entitled to exercise that right without undue obstacles thrown up by the other contracting party," Wasden said in a press release. "Consumers who were hurt will be able to obtain redress and the problems we saw ought not continue in the future."

Additional terms of the agreement require Vonage to:

• Record and verify its telephone calls to customers;
• Provide specific disclosures regarding Vonage's offer of "free" services
• Provide specific disclosure regarding its money back guarantees and any trial periods.