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AOL pricing draws fire
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November 1, 1996: 6:59 p.m. ET
Users have to tell service if they don't want newer, costlier unlimited plan
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NEW YORK (CNNfn) -- America Online is defending its new unlimited usage pricing plan which consumer advocates say is misleading.
In a letter sent to the service's members Oct. 28, AOL Chairman Steve Case touted a new pricing plan that offers unlimited access to the service's proprietary content as well as to the Internet for $19.95 a month.
However, many members and consumer watchdog groups are upset that members will automatically be switched to the unlimited plan unless they notify the company. Case does make mention of that fact down in the letter..
Until the new unlimited plan was unveiled, all users paid $9.95 a month for 5 hours of usage and $2.95 for each additional hour.
In information posted on the service describing the new plan, the company does tell members they will "grandfather" them to the $9.95 plan upon their request.
The company said as of Dec. 1, members will have 90 days to request the $9.95 plan. After that date, it will no longer be available.
Subscribers who pay for two years in advance can get unlimited service for $14.95 a month or $17.95 a month if they pay for one year up front.
Two other options allow customers who connect to AOL through the Internet to continue paying $9.95 a month for unlimited AOL content or $4.95 a month for three hours with additional time priced at $2.50 an hour.
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