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THE beleaguered Internet connection company America Online is
compensating subscribers for the poor service they have received since it began
charging a flat fee for “unlimited” access to the Net.

Since the company launched this marketing strategy in December, the increased
traffic has swamped its network (In Brief, 1 February, p 11). Last week the
company reached a deal with 36 state attorneys general who were threatening
legal action unless it compensated customers quickly.

Under the deal, America Online must hold its membership at its current level
of 8 million until customers start getting online faster. Frustrated surfers
will get a refund of up to two months’ subscription.

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