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Customers Furious Over Double-Billed AOL Accounts

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Case ID: 2859 | Technology | 11/10/2003

A class action has been filed against AOL Time Warner subsidiary America Online, Inc. and its customer service company ICT Group, Inc. on behalf of consumers who allege that over the past four years AOL has regularly double-billed its subscribers by creating what it refers to as "spin-off sub accounts" in violation of federal law. The action seeks compensatory damages for unjust enrichment and breach of contract, plus an order that will prohibit the companies from continuing their allegedly unfair practices.

The action alleges that subscribers who maintain multiple screen names on their AOL account have unknowingly had those screen names "spun-off" into individual separate accounts. AOL then automatically bills the subscriber's credit card or bank account the normal $23.90 monthly subscription fee for this spun-off account. Oftentimes it has taken months for subscribers to find the problem, because AOL has allegedly intentionally manipulated the billing cycle for the spun-off accounts in order to make it appear that the charges are for different billing cycles. For example, the action alleges that AOL will charge subscribers' accounts at the beginning of the month for one subscription fee and will then post a second subscription fee at the end of the same month. As a result, consumers who review their credit card statements assume they are being charged one subscription fee for two separate months, rather than multiple subscription fees for a single month. Allegedly, the only way to tell if you are being double-billed is to compare your credit card statements from multiple successive months.

Allegedly, when subscribers do discover the problem, they are successfully stonewalled by the company's customer support practices. ICT, the company hired by AOL to handle consumer complaints, allegedly makes subscribers navigate a complicated maze of voice mails and subjects them to long periods of being on hold. When a subscriber is finally able to speak with a real human being, they are allegedly forced to speak with an aggressive sales representative who vigorously encourages the subscriber to maintain the spin-off account--if that fails, the subscriber is flatly refused a full refund for the unauthorized charges.


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