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AOL Agrees Settlement Over Unauthorized Billing

by Glen Shapiro, LawAndTax-News.com, New York

10 January 2006

It was announced late last week that America Online (AOL) has reached a proposed settlement agreement with plaintiffs in a class action over unauthorized billing.

AOL stood accused of wrongfully billing consumers for online services and products without obtaining their consent or authorization.

Additional claims stated that AOL sought to charge consumers for accounts, services, and goods after the consumers had tried to cancel the account or service or attempted to return the unwanted product.

Under the $25 million agreement unveiled in Illinois on Friday, there will be three levels of compensation awarded, depending on whether consumers are able to provide documentation showing that they were forced to pay unauthorized charges, and whether they complained to AOL in a timely fashion.

A hearing will be heard on February 22 to determine approval of the settlement.

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