AOL settles unfair billing charges

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AOL has said it plans to improve the way it handles customers who wish to terminate their Internet service accounts, seemingly resolving federal based allegations that the company used unfair billing practices.

The Federal Trade Commission settlement announced Tuesday also requires AOL and its subsidiary, CompuServe Interactive Services Inc., to keep promises for delivering rebates for online services.

The FTC released a complaint with the settlement accusing AOL of continuing to bill its subscribers after they asked to cancel their accounts.

"No company should retain subscribers against their wishes," said Lydia Parnes, deputy director of the FTC's Bureau of Consumer Protection.

AOL said in a statement that it had worked with the FTC to resolve the matter for four years before the release of the official complaint and settlement.

"The company has always made, and continues to make, exceptional customer service and customer satisfaction a top priority," the statement said.

News source: Newsday - AOL Settles Charges of Unfair Billing


AOL, a unit of AOL Time Warner Inc. based in Dulles, Va., noted that the agreement does not contain any fines or admissions of wrongdoing by the company.

The settlement requires AOL to ensure that cancellation requests are promptly processed and billing stops after a request is received. The company also will begin mailing confirmation letters to customers who inquire about canceling service but change their minds. Those customers who ultimately decide to cancel can mail or fax an enclosed form back to AOL.

The FTC also said AOL and CompuServe failed to deliver timely rebates to consumers. The companies promised a $400 cash rebate toward the purchase of a computer if consumers signed up for three years of CompuServe at $21.95 per month. The companies said the rebates would be delivered within eight to 10 weeks, and in some cases, 45 days. But the FTC said the companies unfairly extended the time in which they delivered the rebates.

AOL and CompuServe agreed to deliver rebates on time and provide them within 30 days if no time is specified. The FTC approved the agreement with a 5-0 vote. The settlement will be subject to public comment for 30 days before becoming final.

AOL Time Warner shares rose 10 cents to $16.23 in Tuesday trading on the New York Stock Exchange.

Source - Neowin

RWB

Didn't read the article... but when my parents had AOL, they could not seem to get ahold of anyone or find a link to, or find ANY way of canceling service for 2 months at least. On top of that later on they got Compuserve(owned and is pretty much theSAME thing as AOHELL) when they bought a PC that gave them $400 off, well a month before the "term" was up, Compuserve CANCELED the account for my parents. Not only did they stick out with compuserves ****TY EVERYTHING, but in the end they wound up paying $450 because of cancelation fee's. Tried taking it to court, but were told they cuold do nothing as it would only cost us more money.