AOL, CompuServe and Prodigy settle charges about trial offers

Article Abstract:

CompuServe, Prodigy and America Online (AOL) have settled with the Federal Trade Commission on charges that they have not properly represented the terms of their free trial offers. The companies have also been charged with making unauthorized withdrawals from checking accounts of their customers. The Commission has instated the settlements in order to establish marketing and billing standards in the quickly growing market of Internet service. The FTC settlement with AOL requires that the company disclose the way connection fees and other charges are assessed and calculated. A Prodigy spokesperson stated the company was always fair to its customers and is in compliance with the FTC. A CompuServe spokesperson also said the company was fair to its customers, and that the FTC's problems with the company were minor compared to other companies.

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3 on-line services in accord in abusive billing complaints

Article Abstract:

America Online (AOL), Prodigy and Prodigy have all entered into a settlement with the Federal Trade Commission in regards to the complaints the Commission has received concerning abusive billing and marketing practices. The three companies have not admitted any violations of Federal law, but they have agreed to take action in several areas. To begin with the companies will no longer automatically debted the checking accounts of their customers to cover the cost of the monthly service, without obtaining the approval of their customers first. The companies will also more fully disclose the terms of their supposedly free trial offers and make it easier to cancel the services. The FTC's goal is to stop the deceptive practices of the companies and to ensure more complete disclosure of the online services terms.

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FTC action snares Home Shopping, iMall

Article Abstract:

Santa Monica-based iMall Inc. and two previous presidents were fined a total of $4 million by the FTC. The company admitted no wrongdoing when paying its share, $750,000. The two execs were charged with providing false earnings information for two companies they were promoting. Florida-based Home Shopping is fined for repeating an old crime, that of deceptive advertising. The fine imposed was $1.1 million.

Comment:

A repeat offender in deceptive advertising was fined $1.1 million

United States, Legal issues & crime, Marketing procedures, Cable Networks, Television, Cable and other pay TV services, Video Retailing Service, All Other Information Services, New Electronic Marketing, Regulation/Ethics, Cable TV Systems Operators, Internet, Marketing, Online services, Internet services, Investigations, Cable television broadcasting industry, Cable television, Advertising, Abstract, Home shopping, Franchises, Home Shopping Network Inc., HSN, Health products, Health care products, iMALL Inc., IIML

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