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AOL's flat rate hits turbulence

Published on .

America Online will have to ask its members if they want to switch to a flat monthly rate of $19.95 instead of automatically switching them. The move is the result of a letter sent by the Washington Attorney General's office to AOL claiming that the billing plan violated Washington's Consumer Protection Act, which states that consumers should have the right to decide whether to purchase goods or change the way in which they are purchased. AOL will have to install a pop-up screen asking users if they want to switch to the new pricing.

Copyright November 1996, Crain Communications Inc.

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