X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The Federal Trade Commission announced Tuesday that it has settled charges of deceptive advertising against Gateway and Juno that pertained to the two companies’ Internet access services. The FTC says the companies advertised offers for free services but didn’t clearly disclose details about fees and cancellation terms. As part of the settlement, the two companies have agreed to reimburse some customers for costs, such as long-distance telephone charges, that were unwittingly incurred, according to the FTC. “Free Internet access often turned out to be too good to be true for many consumers, a fact made clear by a significant volume of complaints by consumers,” Jodie Bernstein, director of the commission’s bureau of consumer protection, said in a statement. “[Tuesday's] agreement will help make sure more consumers don’t get taken for a ride on the Internet highway when it comes to the true cost of Internet access.” Among the FTC’s charges were accusations that Juno did not tell users who signed up for a trial offer for its Premium Internet service that they had to use 150 free hours of service within a month’s time and that cancellations were handled through a single, unpublished telephone number. The FTC also alleged that Gateway customers were charged $3.95 per hour to use Gateway’s ostensibly toll-free number for accessing the company’s Gateway.net service. “We believe that our policies and practices have always been comparable to our major competitors,” said Juno spokesman Gary Baker. “Our current practices in the areas of disclosure and customer service are definitely a level above the industry norm.” Gateway spokeswoman Donna Kather said that the FTC’s action regarding Gateway is related to events that are two years old and that Gateway has taken steps to remedy the problem. “We’ve already reached out and refunded a good portion of those customers,” Kather said. “We’re continuing our efforts to satisfy those customers who may have had issues with their Internet service in 1999.” Related Articles from The Industry Standard: Fed Cuts Rates by 50 Basis Points Commerce Department Has ‘Concerns’ About Revised VeriSign Pact Shadowing AOL Time Warner Copyright � 2001 The Industry Standard

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.