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AOL Now Free ... Sort Of

By Joe Benton
ConsumerAffairs.com

August 9, 2006

AOL/America Online • AOL Pays $3 Million, Promises to Clean Up Cancellation Process • AOL Settles Florida Fraud Charges • AntiSpyware Group Targets AOL Release As Dangerous • AOL Heads Roll Over Data Leak • AOL Now Free ... Sort Of • AOL Takes More Hits In Press, On Internet • AOL's Problems Worsen as Consumer Complaints Mount • AOL Embarrassed by CNBC Report On Its Business Practices • E-Mail Taxation Without Representation • AOL, Yahoo Planning Postage Charges for Email • AOL Settles With NY, Agrees to Clean Up Cancellation Process • Ohio Settles Lawsuit With AOL • AOL Abandons Broadband • Ohio Latest to Sue AOL • AOL Loses 2 Million Clients, Faces Subpoenas • Class Action Accuses AOL of Double-Billing Scheme • AOL Offers to Settle Federal Charges --- Consumer Complaints • Cancellation Difficulties • Double-billing • "Free" Hours • Unauthorized Charges • Shop-Direct Complaints • Tech Support

America Online, the granddaddy of all Internet service providers is now free, according to Chairman Jonathan Miller. That's big news from a company that in recent years engaged in ruthless doubling billing and made it next to impossible for subscribers to cancel its service.

But as things turn out, "free" doesn't mean quite the same at AOL as it does almost everywhere else. Changing an existing account to a free account will probably generate a cloud of the same old AOL heifer dust laden with bullying and intimidation that so many consumers have encountered in the past.

AOL subscribers have dropped the service in enormous numbers in recent years. Once 35 million subscribers strong, the ISP currently has only 17.7 million subscribers in the U.S.

Now AOL is in the midst of transformation by making its software which bundles tools like email and instant-messaging service free as well as lowering the price of its dial-up costs.

But while the company wants to attract new members to the free service, it seems to be trying to hang on to the old paying customers at their current going rate of approximately $25.90 a month.

AOL prefers to call its subscriber "members." But there is not much family love in evidence as AOL, true to its reputation, has made it as difficult as possible for existing members to leave the fold.

AOL members trying to become non-members are finding the path to a free AOL hard to find, almost as hard as fiinding a living person on the other end of an AOL help line. If finally connected, there are repeated pitches for additional services and switching to the free account is not one of them.

AOL representatives push a promotional $4.95 monthly plan for customer service and some dial-up hours and a video lesson with a free video camera.

Paying subscribers who fail to run the gauntlet of sales pitches will remain on their current plan at the existing rate.

For the fortunate few who get through to AOL, consumers who have an alternative Internet connection can use AOL software and its virus and spyware protection without a monthly charge.

Members who still wish to use AOL to connect to the Internet can pay $9.95 a month for unlimited dial-up service and customer support.

An AOL package for $25.90 a month, the price of its current unlimited dial-up service, includes additional security features and 50 gigabytes of backup storage along with -- we're told -- customer support.

AOL defends the not-so-free policy by suggesting that it would have been unfair to those members comfortable with their existing service to switch them to a free service. AOL is quick to add that the company wants to inform people about all of their options.

AOL subscribers who use the service to access the Internet -- and AOL says that is nearly two-thirds of its subscribers -- were reminded that if they switch their plans they may find themselves cut off from the Internet.

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