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Ohio Settles Lawsuit With AOL

June 9, 2005
Ohio Attorney General Jim Petro has settled a lawsuit with Internet service providers AOL and CompuServe on behalf of Ohio consumers, obtaining full refunds for inappropriate charges to their accounts.

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Petro filed suit against America Online, Inc. and its subsidiary CompuServe Interactive Services, Inc., in October of 2003 for improper billing and violating a previous agreement with the state.

The lawsuit alleged that AOL failed to honor customers' requests to cancel their subscriptions.

Ohio said its consumer protection service has received complaints that subscribers' credit cards continued to be billed as much as $23.90 per month despite their request to drop the service. It also asserts that AOL has failed to live up to the terms of several earlier multi-state agreements reached in response to consumer complaints in 1996, 1997 and 1998.

"Consumers should be able to cancel an agreement with a business within contractual terms and have the comfort of knowing the business will honor that cancellation," said Petro.

AOL/CompuServe has not admitted to any violations of the Ohio Consumer Sales Practices Act by signing this settlement, but is agreeing to provide full restitution to all Ohio consumers who chose to opt-out of a class action settlement also involving AOL/CompuServe, Clough v. AOL, filed in the District Court of Creek County, Twenty-Fourth Judicial District-Drumright Division, Oklahoma.

"This settlement provides Ohio consumers who opted-out of the class action with the best resolution. It also provides resolution for more than 100 other Ohio complaints not included in our suit," said Petro. "AOL's agreement to comply with Ohio laws should reduce the number of complaints filed. If we don't see a reduction then we will file another action against them."

Twelve Ohio consumers opted-out of the class action settlement and chose to remain a part of Attorney General Petro's suit. They will be receiving full restitution from AOL/CompuServe as a result of the settlement.

AOL/CompuServe also agrees to resolve any future valid consumer complaints they receive from the Attorney General's Consumer Protection Section. This will include at least 100 more complaints initially and continue to provide for any consumers that file such complaints in the future.

The settlement agreement also states that AOL will pay $75,000 to the Attorney General's Office for its costs associated with this lawsuit and the mediation of consumer complaints.

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