Local Kozmo.com customers got billed for items they never ordered.
Published:
4 January 2000 y., Tuesday
About 100 New York Kozmo-users who have accounts with the web-based service that guarantees delivery of entertainment and convenience items in under an hour were mysteriously charged random fees during the week between Christmas and New Years.
"I was charged $57 on Dec. 26. And $77 on the the 29th. And I haven_t used Kozmo in weeks," said Michael Auerbach, a New York-based Kozmo customer who said he knew of two others in his office who were also bogusly billed.
A spokeswoman for Kozmo said the random fees were a mistake.
Alison Blume said the site sent out e-mails to customers who received false charges and also sent the overbilled New Yorkers 5,000 Kozmo points -- valued at $50 -- to remedy the situation.
Founded in 1997 by ex-Wall Streeter Joseph Parks, Kozmo.com has since received a $28 million first round of funding and has expanded it_s delivery service to Seattle, Boston, San Francisco, Washington D.C., and Los Angeles. The company has plans to add 30 new locations to the roster by the end of 2000.
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