AOL has been sued by the state of New York over it’s customer service practices. Around 300 disgruntled AOL subscribers filed complaints with the New York District Attorney’s office accusing AOL of ignoring demands to cancel service and quit billing. Customer service representatives were expected to meet a minimum requirement for retention of customers who called to cancel their accounts. Employees who convinced more than half of the people who called in to stay with AOL could earn tens of thousands of dollars in bonuses.

AOL is to pay the state of New York $1.25 million and reimburse eligible New York subscribers for up to the cost of four months of service. AOL must also reform its customer service practices and “remove obstacles consumers face when seeking to switch or cancel service.”