Porn processor settles deceptive-billing charges

WASHINGTON: A pornography bill-processing company has agreed to forego US$17mil (RM64.6mil) that it billed computer users in order to settle deceptive-business charges, the US Federal Trade Commission said on Monday.

Privately held Alyon Technologies Inc also could be forced to forgive another US$22mil (RM83.6mil) in bills if consumers dispute them, the FTC said.

The FTC charged Alyon and owner Stephane Touboul with illegal billing last year after consumers complained that they did not authorise charges that appeared on their phone bills.

According to the FTC, Alyon installed a modem-dialling program onto consumers' computers that would disconnect their Internet connections and reattach them to its own network, billing them US$4.99 (RM18.96) per minute to view pornographic websites.

The redialling software was installed onto consumers' computers when they clicked on a button indicating that they agreed to terms of access.

Many consumers complained that they did not authorise the charges and had trouble getting disputes resolved, the FTC said. Some consumers who never downloaded the software were also billed because of a faulty billing process, the FTC said.

Along with abandoning the disputed charges, Alyon agreed to explain its billing practices more clearly and provide a straightforward way for consumers to resolve complaints.

The company did not admit guilt as part of the settlement.

In a statement, Touboul said the settlement confirms that Alyon's payment methods "are safe, accurate, and legally compliant."

Alyon has also been sued by at least 13 states. Those cases should be settled within 30 days, Touboul said. -- Reuters