Konkurencja i konsument · 14.05.1997

Prodigy Services Corporation; Analysis To Aid Public Comment

In settlement of alleged violations of federal law prohibiting unfair or deceptive acts or practices and unfair method of competition, this consent agreement, accepted subject to final Commission approval, would, among other things, require the respondent, an Internet service provider, when offering a ``free trial'' with automatic membership enrollment or renewal, to disclose clearly and prominently any obligation to cancel to avoid charges, to provide at least one reasonable means of canceling, and to obtain consumers' authorization before debiting their accounts. The complaint accompaning the consent agreement alleges that Prodigy's ``free trial'' offers resulted in unexpected charges for many consumers, because the offers did not make clear that consumers had an affirmative obligation to cancel before the trial period ended. As a result, consumers who failed to cancel were automatically enrolled as members and began incurring monthly charges. The complaint also alleges that Prodigy failed to obtain appropriate authorization before making electronic withdrawals from the accounts of consumers.