Dulles, Va. - Avoiding a potential lawsuit, AOL has reached a settlement with the attorneys general of Maryland, Virginia and DC, along with those from 46 other states, over its cancellation and refund policies.

The settlement, which includes a $3 million payment by AOL to the states, resolves allegations that the Internet company made it difficult for consumers to cancel their service and refused to honor subscriber cancellation requests.

The states contend that AOL paid its customer service representatives incentives for keeping subscribers signed up, making cancellation "extremely difficult, if not impossible."

The agreement puts strict limitations on that practice, and requires AOL to set up a simple online method for cancellation at http://cancel.aol.com.

AOL also will be required to make refunds to consumers who have complained of unauthorized charges for service, as well as revise a number of other billing practices.

Related Links:
http://www.oag.state.md.us/Press/2007/071107.htm    

http://cancel.aol.com