ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, December 6, 1996 TAG: 9612060030
SECTION: BUSINESS PAGE: A-16 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
THE ON-LINE SERVICE, which has been switching customers to a flat rate, will now give more time and information to choose cheaper options.
America Online agreed Thursday to revise a new pricing strategy, answering concerns the nation's largest on-line service was misleading some people into signing up for a costlier service.
The company made the agreement with 19 states but also agreed to adopt the changes nationwide.
The settlement follows complaints from subscribers that they were given insufficient notice when they were automatically switched Sunday to a new plan costing $19.95 a month.
The new plan gives people access to AOL without any time limits. But for light users of the on-line computer service, the flat rate cost more than a plan it replaced - $9.95 for five hours and $2.95 an hour thereafter.
The company still is transferring subscribers to the new plan unless they advise AOL they prefer other fees. But now America Online is giving users more time and information to state their preference.
Under the agreement, the company will notify its 7 million subscribers with an electronic message when they log on and off of the service as well as through mailings to their homes.
In addition, customers who were automatically switched to the new plan Dec. 1 will be able to change back to the original plan through April 10 and get a refund for the price difference. The refund will appear on credit card bills.
AOL also is providing a toll-free number to handle inquiries and complaints about the new flat-rate plan.
Subscribers have the option to switch to one of several other new plans: $9.95 for unlimited AOL access for people who already have an Internet connection, and three hours of the service per month for $4.95, with additional time priced at $2.50 per hour.
``Our agreement holds the company responsible for clearly asking users whether they want the new plan,'' said Wes Goforth, a spokesman for the New York state attorney general's office.
``The intent of the company previously was to convert the users to the new price structure irrespective of how they may or may not have learned about it.''
America Online did not admit any wrongdoing and was not accused of purposefully trying to deceive customers.
``We're very happy to be moving forward with the new pricing,'' America Online said through a spokesman. ``We are really bending over backwards to make them aware ... of their choices.''
Thursday's agreement with 19 states and Guam was led by attorneys general from Florida, Illinois, New York and Texas. It resembles a deal two weeks ago between AOL and Washington, but that settlement applied only to America Online customers in that state.
LENGTH: Medium: 59 linesby CNB