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From the description of your complaint, AOL was not, legally to blame. The individual was. If you complained to the police and DA in this individual's city, and they refused to press charges, that's probably due to lack of evidence or something similar. AOL can have rules and enforce penalties if they are broken, but they're correct in saying you could have avoided solicitation - or continued solicitation - using their software. I'm sorry this happened to you, but it does not seem AOL was at fault.
This is the law. It's the protection we all recieve by agreeing to TOS at any provider. Would you feel better if you knew the person who scammed you could call AOL and get your home address, phone #, etc...?
AOL has gained a very good reputation - head and shoulders above many internet companies - for dealing with infractions in their TOS. They didn't used to have this reputation, and I doubt they're going to give it up. It took a long time of being serious about the damage the service can do. They won't stop doing that. I don't know what they will do about the person who wrote the lies about Buddy - keep an eye on them at the very least. What's good about newsgroups is that by exposing the lie - however dastardly it was - the individual is known as a rogue. That saves this NG from her future damage, and makes us more cautious in general. If 20 people complained to AOL, I can't say what they did, but it has to mean more to them that if this was an email message that one person was offended by!
UseNet is, and will remain, with any luck, primarily self policed. I think this is good. Even if AOL kicked this person out immediately, they can't ban the rest of their family from gaining a new account, and they can't prevent anyone from posting here. Complaints help - but they will never be a cure all. Caution and awareness of just who is saying what, and has said what else in the past make newsgroups, and solicitations safer for all of us.
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