America Online Offers Refunds, Selectively

America Online Inc. said it is offering refunds on a case-by-case basis to customers who call complaining that they can’t log on to the service. The move comes as AOL faces a rash of criticism that the online computer service oversold a product it couldn’t reliably deliver. With users swamping the service’s lines in response to a new flat-rate pricing plan, busy signals frequently greet subscribers trying to log on during periods of heavy usage. A spokeswoman for Dulles, Va.-based AOL said refunds may take the form of free online service, such as extra months, instead of cash. She said such refunds to dissatisfied customers have always been AOL’s policy. However, Chairman Steve Case said Friday that the company was not considering any refunds in response to the latest criticism.