FT.com AOL Fined for Cancellation Policy


"The internet service provider is now $1.25m poorer after coming under the eagle eyes of Eliot Spitzer, the New York's attorney-general.

AOL was ordered to pay the money in penalties and legal costs, and agreed to change some of its customer service practices after an investigation based on complaints from about 300 of its New York customers. It may also have to provide refunds for up to four months subscription costs to those customers who complained.

The complaints centred around AOL's cancellation policy. AOL customer service staff had been incentivised to retain customers who wanted to leave the internet service provider. Mr Spitzer said 'in many instances, such retention was done against subscribers' wishes, or without their consent'."

Update 2006 07 06: Check out this recording of a guy trying to quit AOL.