Utah Attorney General & AOL End Suit Over Cancellation Costs

July 11, 2007 -- “You’ve got mail!” could mean money for some Utah AOL customers eligible for a refund. Utah Attorney General Mark Shurtleff announced a settlement today with AOL, one of the nation’s largest Internet service providers, that will require refunds and make it easier for customers to cancel services.

“Once AOL had you as a customer---the company made it nearly impossible to switch to another Internet provider. This settlement makes it easier for customers to choose what they want and don’t want,” says Shurtleff.

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The settlement filed by Utah and 47 other states resolves complaints involving customers experiencing difficulties or confusion while trying to cancel AOL services. AOL had previously limited how service could be cancelled which meant most customers had to call AOL directly. AOL customer service representatives received incentives for retaining or “saving” customers from cancellation which made it extremely difficult if not impossible to cancel.

Today’s agreement puts strict limitations on this practice and requires recording and verification of these telephone calls. The agreement also expands options by allowing cancellations online at http://cancel.aol.com. AOL is now required to make broad refunds to consumers who have complained of unauthorized charges and will work with the states to make sure this practice doesn’t happen again.

The settlement also intends to end consumer confusion by requiring AOL to provide better information about reactivating terminated accounts and about accounts billed directly to a consumer’s monthly telephone bill. AOL will also revise its practice of allowing consumers to create “spin off” accounts---additional paid accounts for AOL service stemming from one original membership. These accounts can now only be created over the phone in a recorded conversation with a customer service agent, who must make detailed disclosures of the applicable costs.

AOL recently announced that it would begin limiting its role as an Internet access provider and allow its customers to convert to free e-mail accounts. The settlement further requires AOL to reimburse the states $3,000,000 to cover expenses involved in the litigation-Utah will get $45,000 from that amount.

Source: Utah Attorney General