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From: ptownson@eecs.nwu.edu (Patrick A. Townson)
Newsgroups: comp.dcom.telecom
Subject: Prodigy Must Refund Fees to Unhappy Subsribers
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Date: 29 Dec 90 06:51:02 GMT
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X-Telecom-Digest: Volume 10, Issue 906, Message 3 of 6


UK Tony wrote me recently to mention a new development in the
situation with Prodigy, the White Plains, NY information service owned
jointly by Sears and IBM.

After discussions with the Texas Attorney General's office, Prodigy
has agreed to refund up to four month's of fees to Texas subscribers
who want to cancel the service.

The Texas Attorney General's office had accused Prodigy of misleading
customers about the rates and fees to use the service. According to
Jim Mattox of that office, the main selling point of the service was
that it charged a flat monthly rate with no usage charges. He said
that Prodigy did not adequately notify subscribers of the change to
usage-sensitive pricing of email when that new plan went into effect
back in Septmeber. 

Although Prodigy disputed the claims of the Texas agency, saying that
adequate notice was given and that their billing practices were not
deceptive, they agreed with the Attorney General that the best
interests of all would be served by offering refunds to customers who
wished to cancel out.

Prodigy has agreed to notify Texas subscribers to the service for the
period September 6, 1990 to December 7, 1990 that they may cancel at
any time with no further obligation or penalty, and that they are
entitled to a refund of up to four month's of service fees.  Notices
must be posted electronically on the system in conspicuous places
making this same announcement.  In addition, Prodigy must clearly
disclose all fees for the service in future advertisement in Texas.
 
By it's own admission, Prodigy has 'several hundred thousand'
subscribers in Texas.

Prodigy also agreed to reimburse the government $12,500 for the costs
involved in the investigation and negotiations.

My thanks to UK Tony for passing along this interesting bit of news.
I'm sure many Prodigy subscribers and ex-subscribers are accepting the
news gleefully, even if they don't reside in Texas!    :)


Patrick Townson