"a fish, a barrel, and a smoking gun" |
"You've got litigation!" There's been a strange shift in the power of the fourth estate. The Wall Street Journal and Newsday are contacting sources from alt.aol-sucks, CNN is running quotes from alt.aol-sucks, and The Washington Post did a story about alt.aol-sucks. The teenaged author of the "Why AOL Sucks" page is pontificating to the
L.A. Times problems, and the newsgroup also turns up in an Utne Reader story (complete with Clifford Stoll quote), and one by Time magazine's Philip
Elmer-DeWitt form, misspells the newsgroup's name. The "Why AOL Sucks" author put the page on his application to Cornell. Nippon Telephone and Telegraph contacted him for advertising rates. And last August, an attorney contacted the 17-year-old to publicize his class action lawsuit against the billion-dollar-a-year corporation. By now everyone's heard the story - vigilant California attorney notices that, without telling customers, AOL rounds any session fraction longer than 45 seconds to two minutes. (Prodigy, in comparison, tracks every second of a session, then rounds up one minute at the end of the month.) Court documents suggest overbilling each member for three minutes a month would constitute the entirety of AOL's net income for 1994.
So who better to publicize the suit than the way new web criers? A grass-roots web journalist's free newsletter turns up in court documents - the "Don Henley Must Die" issue (Exhibit Nine). But even though he pans the proposed settlement ("If AOL can't bill for actual time or estimate fairly... it ought to write it off as a cost of doing business"), earlier last month lawyers entered his "alt.aol-sued" story supporting their claim that publicity of AOL's billing practices in and of itself rectified the problem. (Maybe next they should try to sue AOL for sucking.) With creative interpretative skills available only to lawyers anticipating a cushy settlement, they presented the fruits of their online browsing to the court. "Apart from the media coverage of the lawsuit, Steve Case, the President of America Online, addressed the billing practices raised in the lawsuit in a 'Steve Case Letter'". This must be using the word "addressed" in a very strict legal sense (as in, Steve Case sent it to the entire AOL membership) - to our reading, that letter was kind of equivocal ("some members have raised questions" which have "led to rumors that allege we are 'overcharging' for time spent online...") The settlement proposes that former users who didn't intuit the higher math be given a token free hour on the system - if they resubscribe. (Or is that 58:45?) They're also entitled to $3.00 if their bill was over $300, $6.00 for $600... but the proposed settlement caps total cash damages for all users at $500,000. Granted, it's difficult to disagree with Exhibit One - the Bay Area legal journal article that begins "lawyers complaining about overbilling may sound as plausible as cops opining about an overconsumption of doughnuts..." We doubt that when a San Francisco judge rules on the proposed settlement in September, the lawyers expect to be paid in AOL dollars. But the media lined up to dutifully
report proposed settlement negotiated on behalf of current and former members - suddenly abandoning their pundits in alt.aol-sucks. "Who was the bonehead lawyer that fucked us over on that one?" "Maybe if we sit around long enough they'll start doing handstands or something and offer a free hour AND A HALF!" "My lawyer went to Virginia and all I got was this lousy free hour." Lost in the equation is the fact that everyone hates AOL. Not just Declan McCullagh and the
editors of HotWired content providers like Hecklers
Online 1995, a Danish magazine said that the FAQ of the month came from alt.aol-sucks months before AOL had even announced the launch of AOL Canada. Coincidence? We think not. Contrary to the suit's original purpose, the proposed settlement doesn't even require AOL to change the way they bill users - but only to publicize it better. (We can picture the campaign now - "More than any other online service, at AOL, we know how valuable your time is.") And to, as court documents say, "disclose the correct amount of time for which the subscriber will be charged" at the end of each sesson. Which, as far as we can tell, still doesn't occur. The new software now displays an "Are you sure you want to go?" ad (before the final packet of ads). But it doesn't display billing information unless you skip the Exit button and use the sign-off-but-leave-the-software- open button instead. In fact, "disaggregating" towards an ad-supported model, AOL's free time giveaways actually increase the numbers on (billable) advertisement hit counts. AOL recently mailed former members 15-free-hour offers with no legal prodding whatsoever. But dig deeper into the irony of wiping the slate clean with time on a service dropped by an estimated three million subscribers: The proposed terms cover not just billing actions, but also unrelated charges, such as drawing unauthorized funds from checking accounts, and delays caused by AOL's software. Since every ex-subscriber is a member of the class represented in the suit, AOL shields itself from any future suits, binding all former members to the settlement terms unless they opt out before August 23. Within days of the announcement, the editor of Boardwatch was calling it "a royal rape," and a petition went up at the venerable aolsucks.org site. One anticipates the arguments at the public hearing in September: "Free time on the service is not only a proposed settlement term, but a national joke, your honor." But with the media's odd silence on the settlement's broad-based opposition, there's an eerie calm before the August 23 filing date for objections. The attorneys' fees stand at $2.75 million dollars. And the author of the "Why AOL Sucks" page is packing for Cornell. Who says there's no profits to be made from online services? courtesy of Destiny
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