America Online Inc. agreed to pay $3.5 million to settle Securities and Exchange Commission charges of improper accounting procedures.
The SEC alleged AOL recorded its marketing costs as an asset over a period of time. While many direct marketers legitimately capitalize expenses — as this practice is called — the SEC felt that AOL couldn’t justify making the connection due to what the regulatory body called “the volatile and unstable nature” of the Internet.
In a totally unrelated development, AOL announced a multi-year deal with AutoNation Inc that will let AOL member buy cars and trucks through a new online service. Financial terms were not disclosed.
AutoNation will be the e-tailer of new and used vehicles to AOL members who buy a car or truck through AOL AutosDirect, a new site available through AOL.
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