Group sues WebTV over late fees
By Bloomberg News
Special to CNET News.com
June 10, 1999, 5:00 p.m. PT
SAN JOSE, California--Microsoft's WebTV Networks was sued by a non-profit group in California that claims the Internet service provider
is illegally charging subscribers a $20 late fee when they fail to pay their bills on time.
WebTV, which Microsoft acquired in 1997, also imposes the late fee on customers when they fail to provide a current
mailing address, the suit says. The Consumer Justice Foundation, based in Humboldt County, California, claims the late
fee bears no relationship to any costs WebTV incurs.
The suit comes at a time when Microsoft is trying to intensify its efforts outside the U.S. and push beyond desktop
computing into the Internet. WebTV charges a monthly fee to provide more than 700,000 households access to the
Internet through ordinary television sets.
Microsoft spokesman Tom Pilla had no immediate comment on the suit, filed today on behalf of the general public in
Santa Clara County Superior Court. The suit seeks a court order prohibiting WebTV from collecting the fees, and asks
the Microsoft subsidiary to return all money it has received as late fees.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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