RealNetworks reached an agreement with the Washington State Attorney General over discontinued e-commerce practices and will set up a up a $2 million compensation fund for its customers. In accordance with the settlement agreement, RealNetworks has committed to discontinuing the use of pre-checked boxes for purchases of RealNetworks subscription products; spelling out more clearly the material terms of RealNetworks product offerings; offering online cancelation of subscription offerings and enhancing RealNetworks customer support guidelines regarding cancelation.

About two years ago, The Washington State Attorney General's Office contacted RealNetworks regarding concerns they had with some of its e-commerce practices. The company was being investigated for allegedly charging customers for services they did not subscribe to.

"While we disagree with the complaint filed by the Washington Attorney General, we acknowledge that some aspects of RealNetworks' e-commerce practices were not what our customers expected of us," RealNetworks said in a statement. "More importantly, those practices were not up to the high standards we expect of ourselves.The practices at the heart of the issue were discontinued years ago, prior to the commencement of this matter," the company added.

As part of its greement with the Washington Attorney General, RealNetworks has set up a restitution fund for certain U.S. customers who enrolled in RealNetworks subscription products between January 1, 2007 and December 31, 2009.

RealNetworks also created a 'Customer Bill of Rights' that spells out how its customers can expect to be treated by the company. The company has also launched a new website, www.realnetworksfacts.com, for its customers, employees and stakeholders to understand the situation and all that the company has done, to make things right for its customers.