Online Giants Agree To Settle Allegations

Fri., May 2, 1997

Compiled From Wire Services

Three of the largest online services agreed to settle allegations that their free trial offers resulted in unexpected charges to customers, the Federal Trade Commission said Thursday.

America Online, Compuserve and Prodigy agreed to “clearly and prominently” disclose any obligation of customers to cancel service and to provide an easy way to cancel before automatically enrolling customers. There was no financial penalty.

In television ads, direct mailings and newspaper announcements, the three online services have used free trial offers to attract new users. The FTC alleged customers weren’t told they would be charged if they failed to contact the service to cancel when the trial period ended.

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Online Giants Agree To Settle Allegations

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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