RealNetworks reached an agreement with the Washington
State Attorney General over discontinued e-commerce
practices and will set up a up a $2 million compensation fund for its customers.
In accordance with the settlement agreement,
RealNetworks has committed to discontinuing the use of
pre-checked boxes for purchases of RealNetworks
subscription products; spelling out more clearly the
material terms of RealNetworks product offerings;
offering online cancelation of subscription offerings
and enhancing RealNetworks customer support guidelines
About two years ago, The Washington State Attorney
General's Office contacted RealNetworks regarding
concerns they had with some of its e-commerce practices. The company was being investigated for allegedly charging customers for services they did not subscribe to.
"While we disagree with the complaint filed by the
Washington Attorney General, we acknowledge that some
aspects of RealNetworks' e-commerce practices were not
what our customers expected of us," RealNetworks said in
a statement. "More importantly, those practices were not
up to the high standards we expect of ourselves.The
practices at the heart of the issue were discontinued
years ago, prior to the commencement of this matter,"
the company added.
As part of its greement with the Washington Attorney
General, RealNetworks has set up a restitution fund
for certain U.S.
customers who enrolled in RealNetworks subscription
products between January 1, 2007 and December 31, 2009.
RealNetworks also created a 'Customer Bill of Rights'
that spells out how its customers can expect to be
treated by the company. The company has also
launched a new website, www.realnetworksfacts.com, for
its customers, employees and stakeholders to understand
the situation and all that the company has done, to make
things right for its customers.