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Company AOL TimeWarner [Company Info]
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Date Issue Title
24th Aug 2005 Questionable Practice AOL pays out after Spitzer probe

Report
The world's largest internet service provider America Online (AOL) has vowed to reform its customer service after agreeing to settle a US lawsuit.

It follows an investigation by New York state attorney general Eliot Spitzer into complaints that AOL ignored people who wanted to cancel the service.

AOL will provide refunds to all the 300 customers who complained and will pay New York State $1.25m (0.69m) costs.

Employees at AOL are rewarded if they can deter customers from cancelling.

For years, AOL has encouraged workers to meet minimum "save" targets to retain customers who want to end their subscriptions.

The Virginia-based company, owned by Time Warner, has agreed to abolish the requirement that its staff achieve a minimum number of "saves" in order to earn a bonus, but stopped short of admitting any wrongdoing.

AOL will provide up to four months of refunds to all New York customers who have claimed their cancellation requests were ignored. It has 1.9 million subscribers in the city.

"This agreement helps ensure that AOL will strive to keep its customers through quality service, not stealth retention programmes," Mr Spitzer said in a statement.

Other Reports on AOL TimeWarner
Date Issue Company Report
8th Aug 2006 Other Issue AOL TimeWarner AOL apology for search data error
27th May 2006 Fraud Investigation AOL TimeWarner Time Warner, Ernst to Settle Fraud Suit
3rd Aug 2005 Questionable Practice AOL TimeWarner Time Warner to Pay $2.4 Billion for AOL Suit
10th Jan 2005 Fraud Investigation AOL TimeWarner Ex-AOL staff face criminal charge
15th Dec 2004 Fraud Investigation AOL TimeWarner Time Warner fraud charge settled
20th Jun 2003 Questionable Practice AOL TimeWarner Excessive Spending

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