AOL settles complaints for $2.6M

Article Abstract:

American Online (AOL) will pay $2.6 million to 44 states to settle complaints it misled consumers by switching from hourly to flat-rate fees in October 1996. The settlement calls for AOL to give consumers at least 30 days of notice of a change in service and to ensure there is a one-month limit on its 50-hour free trial offers. The deal was the third for AOL and the states, which also examined whether the company charged clients for books, software and services without their permission. The money paid by AOL will cover the states' legal expenses and consumer-education efforts.

Comment:

Will pay $2.6 mil to 44 states to settle complaints it misled consumers by switching from hourly to flat-rate fees in 10/96

Legal issues & crime

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AOL pushed by Microsoft

Article Abstract:

Microsoft, the biggest Internet service provider in the US, placed pressure on America Online to only utilize the Microsoft browser if it wanted the America Online icon to be installed on the Windows 95 operating system of Microsoft, based on testimony from America Online official David Colburn. By doing so, America Online limited use of the Internet software created by Netscape Communications by its own members. Microsoft is currently under investigation by 20 US states and the US Justice Department for engaging in unfair competitive business practices.

Comment:

Is pressured by Microsoft Corp to utilize Microsoft browser if the America Online icon were to be installed on Windows 95

Government regulation (cont), Microsoft Corp., Internet access software

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5 cents now buys an MCI minute

Article Abstract:

MCI WorldCom reduced the price of residential long-distance calls from 10 cents a minute to five cents per minute from 7 p.m. to 7 a.m. and all weekend, compared to Sprint's 5-cent-per-minute promotion that can be availed from 7 p.m. until midnight. According to MCI's senior VP, John Donoghue, the move is effected to encourage more nighttime calls because the company's network is underutilized during nighttime and weekends.

Marketing procedures, Long Distance Telephone Svc, Long distance telephone services, MCI WorldCom

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