TRENTON, N.J. — A New Jersey company that allegedly scammed thousands of Internet users, fraudulently billing them for online pornography services they didn’t ask for, has agreed to make restitution and change the way it does business online, authorities said Thursday.
Alyon Technologies Inc. of Secaucus has entered into a consent agreement with New Jersey and 22 other states in which it agreed to refunds for anyone who paid bills but submitted complaints about them prior to June 2003. Those who refused to pay will have their debts forgiven, according to New Jersey Attorney General Peter Harvey.
In addition, the company agreed to implement a verification system for future online transactions in which it informs users they are about to employ an Alyon service.
The company, which also agreed not to bill minors for its services, must give “clear and conspicuous” information about terms and conditions, including information on charges and on how to contact Alyon.
The state has received more than 700 consumer complaints from around the nation from Internet users who complained that they were billed an average of $150 for online pornography they never requested or accessed.
In some of the cases, pop-up windows containing pornographic images appeared on Web sites being used by children, Harvey said.
“This is an important settlement agreement for all New Jersey consumers, not only for the hundreds of Internet users who were directly impacted and complained but for countless others who use the Internet every day or might elect to do so,” said Harvey.
In 2003, the state of New Jersey filed a three-count complaint accusing Alyon of switching Internet users to its network so it could bill them for services, even when the users hadn’t requested the service.
The Federal Trade Commission, which also fielded complaints against Alyon, estimates that more than 200,000 consumers were affected. Under a separate agreement with the federal government, Alyon agreed to forgive $17 million in bills.
According to the FTC, Alyon charged consumers $4.99 a minute for dial-up Internet connections to adult Web sites.
Customers would see a pop-up for the site, hit a button to agree to terms or close the window and Alyon would then download a program onto the user’s computer that disconnected them before dialing a new provider and charging them for it, the FTC said.
Alyon officials could not be reached for comment on the settlement Thursday. Telephone messages left separately for attorneys Lawrence I. Fox and Jennifer Kolen were not immediately returned.
Harvey warned consumers to beware of Internet come-ons.
“Internet businesses certainly have a duty to act responsibly and within the law, but consumers also need to protect themselves by being extra vigilant about what they are `clicking on’ when surfing the Web, and about sharing credit card and other personal data,” said Harvey.