Netflix settles class action lawsuit for breaking promises

Quakester2000

November 5, 2005

drpino used our news submit to tell us that Netflix
the supposedly unlimited online DVD rentals company has settled a class action
lawsuit with a customer in San Francisco . The suit had accused Netflix of breaking its marketing promises which were unlimited DVD rentals and a one day delivery. In fact the service isn't unlimited at all as you can't check out more than 3 DVDs a month on the 3-at-a-time-plan. Also with normal mail varying in speed people didn't always get their dvd rental after 1 day.

While Netflix denies any wrongdoing it has settled the lawsuit so that anyone who joined before 15 January 2005 and is still a customer will be upgraded to the next highest plan available if you go and join the suit. Those who are not members of the service anymore will get a free month's access to the service if you join the suit.

While this settlement might sound great Netflix still reserves the right to bill you for the higher service until you want to downgrade after your free month of the better service. If you do join the suit you better make sure you know when to go back to your old service or you will be charged for the higher service.

If you are still interested claiming you have until 25 December 2005.

In September of 2004 a class action lawsuit, Chavez v. Netflix, Inc., was filed by a consumer in San Francisco Superior Court. The suit accused Netflix of failing to deliver on two main marketing promises, namely "unlimited DVD rentals" and "one day delivery." As you might guess, the service is not truly unlimited, as you can't check out 100 DVDs (or more) on a 3 at-a-time plan in a single month, no matter how hard you try. The delivery claim was also seen as problematic, since snail mail service varies in speed.

Netflix has denied any wrongdoing. Nevertheless, the two parties came together and settled the suit. The settlement applies only to customers who were signed up for service before January 15 of this year. If you meet that criteria and are still a customer, you will receive a one-month "upgrade" to the next highest service level if you join the suit. If you are no longer a customer, you can get a free month of service for the 1, 2 or 3 DVDs at-a-time program, again with the caveat that you have to join the suit.

The settlement might sound fair, but Netflix is unfortunately reserving the right to keep you at your upgraded status and bill you appropriately until you downgrade. So, if you join the class action and move up a level, you'll need to mark your calendar or pay close attention to your email so as not to be charged in the next billing cycle.

Anyone wishing to join the suit should do so by December 28, 2005.

Source: Legal