JPay to pay Vermont $7,380 penalty for contest violations

Vermont Business Magazine Attorney General Thomas JDonovan, Jrhas announced that Vermont has entered into asettlementwith JPay Inc, a provider of communication services to correctional facilities. The settlement involves a promotional contest that JPay conducted in violation of Vermont law. JPay will pay a $7,380 penalty to the State of Vermont, and will refund atotal of approximately $400 in fees paid by 82 Vermonters who entered the contest.

In April, JPay advertised its “JPay Day” contest, offering anyone who used JPay’s services on April 20, 2017 to enter a drawing for a $1,000 prize. Vermont law requires that any company running such a contest must offer a way for people to enter the contest without making a purchase or paying an entry fee. JPay failed to provide that option to Vermonters. In recognition of its error, JPay will pay the penalty to the State, refund transaction fees charged to all Vermonters on the day of the contest, and promises to follow Vermont law in the future.

In the next few weeks, Vermonters who made purchases through JPay on April 20, 2017 will receive a notification of a refund from the company. Most refunds will be automatically applied to the credit card used for the transaction. Refunded transaction fees paid to consumers will be for an average of $5. Any Vermonter who is entitled to a refund from JPay but does not hear from the company by the end of June should contact the Attorney General’s Consumer Assistance Program at 1-800-649-2424.