AOL ducked the lawsuits by negotiating the changes with 48 states and the District of Columbia. The money will cover the costs of the states' investigations, or be used to help consumers. "AOL's old practices created obstacles to thwart legitimate cancellation requests and was unfair to consumers," Michigan Attorney General Mike Cox said in a statement Wednesday.
consumers found it "extremely difficult if not impossible" to cancel AOL services, Michigan's statement said. Service representatives were paid incentives to prevent customers from leaving. The agreement limits that practice, and requires: Recording of consumers' calls.
Service reps to explain clearly what services cost. The company to maintain an online cancellation system, which AOL only started in August 2006. The company must also revise its disclosure about reactivating accounts that consumers have closed.
It has agreed to pay refunds to customers for unauthorized charges and co-operate with the states on consumer issues. AOL Canada's way of handling customers' calls was different from the U.S.
AOL operates one of the United States' largest internet access businesses, runs popular web destinations, and offers free software and services. It's part of the Time Warner conglomerate.
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