AOL Revises Method of Subscription Choice

America Online Inc. said Friday that it will move customers to a new flat-rate pricing plan unless they choose otherwise through a pop-up menu on their computer screens.

The online service this week reached an agreement with California and 18 other states that lets customers choose between its new $19.95-a-month plan that went into effect Sunday and its other hourly fees. AOL had been criticized for failing to adequately disclose its new pricing structure.

Under the agreement, customers will get a pop-up notice on their computers telling them about the $19.95 pricing. If they want other pricing plans, they can choose them from a menu.

“Members must choose an alternative if they don’t want to be billed at the new, standard $19.95 unlimited-use choice,” said Steve Sigmund, an AOL spokesman.

AOL shares lost $1.125 to close at $38.875 on the NYSE.

Since the new pricing went into effect, Dulles, Va.-based AOL has had more than 8.5 million customer sessions a day, Sigmund said.

Along with the new pricing, AOL unveiled steps to increase system capacity.

The agreement reached this week is similar to one AOL reached with Washington. In addition to California, the states are Arizona, Arkansas, Connecticut, Florida, Hawaii, Iowa, Illinois, Massachusetts, Michigan, Minnesota, New York, New Jersey, Ohio, Pennsylvania, Tennessee, Texas, Vermont, Wisconsin and the territory of Guam.

The agreement also requires AOL to provide retroactive refunds to all customers who ask to switch back to the old plan before April 10.