Online services settle FTC charges

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America Online, CompuServe and Prodigy will settle Federal Trade Commission charges that they mishandled debit procedures from free service trial offers, the Federal Trade Commission said. The FTC stated that all three services "must disclose clearly and prominently any obligation to cancel [service] to avoid charges, and provide at least one reasonable means of canceling." The settlements require that any future free service ads must make clear there is an end to the free service period and customers must cancel to avoid being charged.

Copyright May 1997, Crain Communications Inc.

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