Gateway, Juno settle U.S. FTC charges over internet service access claims

WASHINGTON (AFX) - The Federal Trade Commission said Gateway Inc has agreed to settle charges that it misrepresented the cost of its "Gateway.net" internet access service.

	    The so-called "free" or flat-fee services offered by Gateway resulted in significant charges to many consumers, a fact not fully disclosed by the company, according to the FTC. 

	    Gateway charged rural customers of its Gateway.net internet access plan as much as 3.95 usd per hour for accessing the Web via a so-called "toll-free" number, when the service was advertised as coming free with the purchase of a Gateway computer, according to the FTC's complaint.

	    "Hidden fees often lurked in minuscule fine print tucked away at the end of ads or service agreements. Today'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," said the FTC in a statement.

	    Under the terms of the settlement, Gateway will be prohibited from misrepres enting the price of internet access service, and will be required to refund all charges for the so-called "toll free" numbers paid by customers who registered on the local access plan between January and April 1999.

	    Separately, Juno Online Services Inc signed an agreement that advertising for its "free" or flat-fee dial-up internet services was "deceptive".

	    According to the FTC, Juno engaged in a number of "deceptive" practices that made it difficult for customers to cancel their trial services, with the result that they would be billed for a service they no longer desired.

	    Among other allegations levelled at Juno was that it failed to disclose to subscribers that they would incur long-distance charges for internet access.

	    "These so-called 'free' Internet access offers were anything but," said the FTC, adding: "The relevant conditions of any offer should be disclosed clearly and conspicuously so that consumers can make their purchases based on the facts."

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