SANTA ANA — Microsoft Corp. agreed to pay more than $100,000 to settle a lawsuit filed on behalf of consumers claiming they were overbilled for Internet time, an Orange County prosecutor said Tuesday.
The consumer protection lawsuit charged that Microsoft and its subsidiary Microsoft Network LLP failed to promptly terminate subscribers’ Internet accounts on request.
Microsoft did not admit any wrongdoing in the case, but agreed to the settlement and to end a controversial credit card procedure.
The settlement amount includes $100,000 in civil penalties and investigation costs plus a yet-to-be-determined amount for restitution, said deputy district attorney Andrea Burke.
The case involved about two dozen customers who could not provide Microsoft with the last six digits of their credit card on file because their cards had changed. Microsoft told users they had to get their original credit card numbers from their bank before the company would cancel the service, Burke said.