[Ermine] AOL thievery

Just in case you needed another reason to hate AOL... --Grizel (former AOL member)

"By CNET staff

July 6, 1996, 9:30 a.m. PST

"America Online, the company whose name has become synonymous with "10
free hours," has agreed to give away millions of hours to settle several lawsuits accusing it of misleading billing practices.

"Attorneys representing America Online customers in 11 class-action
lawsuits said Friday they have received preliminary approval from a San Francisco Superior Court judge that would awardfree hours to current subscribers and cash to former customers.

"We believe that this settlement represents a fair resolution of claims
raised against AmericaOnline in numerous lawsuits," the attorneys said in a joint statement.

"The lawsuits claim consumers are not aware that charges for online time
are rounded up to the next full minute. Additionally, America Online was charged with adding 15 seconds to each session for "connection" time and with occasionally billing customers for time spent in "free"areas.

"The settlement applies to subscribers between July 15, 1991, and March
31, 1996. Current subscribers would receive one free hour from America Online. Subscribers who spent more than $300 during the five-year period would receive one additional hour for each $300 in charges.

"Former subscribers who spent more than $300 would be eligible to
receive cash based on a similar calculation through a simple claims process. Under the proposed settlement, AmericaOnline would be required to pay a maximum of $500,000 to the entire class of former customers.

"The company also agreed to "promptly implement" improved billing and
cancellation procedures, the lawyers said.

"America Online had approximately 5.5 million subscribers as of March
31. During the period covered by the settlement, the company charged $10 per month for five hours of connect time, plus about $3 for each additional hour. Last week, the fees were changed to $20 per month for 20 hours of connect time, which values each hour given away under the settlement at $1.

"America Online, based in Vienna, Virginia, has acknowledged in recent
weeks that its billing practices are being scrutinized by attorneys general from several states and the Federal Trade Commission.

"Last month, America Online Chairman Steve Case said the company hoped
to quickly settle the class-action lawsuits and various investigations. The agreements would not have an "adverse impact" on the company, he said.

"America Online stock closed at $41 1/8 Friday, down $2 1/4."
--+---+---+---+---+---+---+---+---+---+--- From: Miss Zelda <MizzZelda@dnaco.net>
--+---+---+---+---+---+---+---+---+---+--- Received on Sun Jul 7 11:59:47 1996