[to be printed on Juno Online Services, Inc. letterhead]


Dear [manufacturer]

This letter is to inform you that Juno recently voluntarily entered into a settlement agreement, or consent order, with the Federal Trade Commission ("FTC") regarding certain aspects of the advertising for our Internet access services. The settlement requires us to notify any party with whom we have agreed to advertise, promote or sell our Internet services to stop using advertising or promotional materials that do not make certain disclosures required by the settlement. This letter summarizes the FTC's allegations and those order provisions that are most relevant to our business relationship.

The FTC's Allegations

The FTC alleges in part that Juno represented that consumers who purchased computer-related products would receive cash rebates for subscribing to our fee-based Internet access services for a minimum period of time. The complaint challenges as deceptive our failure to disclose or adequately disclose in making these representations the following information:

  • Consumers who cancel their Premium Web Internet service within this minimum period of time must repay the entire rebate received and pay a cancellation fee;
  • We do not provide local access telephone numbers in certain areas, and therefore, some consumers may have to pay long distance telephone charges to access our Internet services; and
  • We automatically renew all subscriptions to our Internet access services on a month-to-month basis after the minimum commitment period has ended, unless our members contact us to cancel the service.

The Consent Order Provisions

The consent order we entered into requires, among other things, that advertisements and promotional materials for any Juno Internet access service that is sold or distributed in connection with the purchase of another product or service, must include the following information, in a clear and conspicuous manner, where a price or cost claim is made about our service and/or these other products and services:

  • The dollar amounts of any and all fees, charges, rebate repayments, and other costs consumers must pay if they cancel our Internet service;
  • That consumers may have to pay long distance telephone charges, or if it is the case, that consumers may have to pay other costs in excess of local telephone service charges to use our Internet service;
  • The means we provide for consumers to find out the telephone numbers available for accessing our Internet service and the town or city where those numbers are located; and
  • That consumers should contact their local telephone company to determine whether using the access telephone number in a location closest to them to access our service will result in charges in addition to local telephone service charges.

One means for us to notify consumers that they should contact their local phone company to determine whether an access number is local is to make this disclosure when they inquire about what access numbers we have available. The settlement further allows for the appropriate disclosures to be made in Internet advertisements by using hyperlinks that lead directly to the information above. These hyperlinks must appear on the same Web page and near to claims about the price or cost of our Internet access service, or other products or services sold in conjunction with our service. The hyperlink that leads to information about cancellation charges and fees must be labeled "Early Cancellation May Result in Significant Charges. Click Here."; and the one that leads to information about long distance and other toll charge information must be labeled "Significant Phone Charges May Apply."

As part of our settlement with the FTC, Juno is taking steps (such as sending you this letter) to ensure that our promotional partners stop using advertising or promotional materials that do not fully comply with the requirements described above.

Thank you for your assistance. If you have any questions, please feel free to call us at [ ].



Juno Online Services, Inc.