Judge OKs Suit Over AOL Pop-Up Ads

A judge has allowed America Online's hourly plan subscribers to sue AOL over time lost to pop-up advertisements.

At least 2.5 million subscribers have overpaid by $15 million to $20 million when pop-ups appear after they begin paying hourly rates for additional time beyond their monthly limits, the subscribers charge.

Pop-ups appear on the screen while computer users are online, forcing them to click to erase the ads and get back to what they were doing. The lawsuit claims AOL doesn't tell people that the advertising time is counted toward billing.

"They're collecting incredible sums of money from advertisers," said subscribers' attorney Andrew Tramont. "At the same time, they're charging you for something they're getting paid to put on the screen."

Circuit Judge Fredricka Smith refused to dismiss the lawsuit June 20 and said it could go forward as a class-action.

AOL spokesman Rich D'Amato said Tuesday that the case is without merit and that the Internet service will appeal the ruling.

The lawsuit covers customers paying $5.95 a month for three hours of service and $9.95 a month for five hours of service. Those paying for unlimited access are not affected.

AOL now allows customers to avoid the pop-ups, but Tramont said that option was added after the lawsuit was filed in 1999.

Vienna, Va.-based AOL fought to have the case heard in its home state, where class-action suits are barred. But Smith ruled it would be unreasonable to force subscribers to pursue individual small-claims cases in Virginia.