November 2, 2005 1:42 PM PST

Netflix members eligible for free upgrade

Thousands of Netflix subscribers are eligible for a one-month upgrade to their online movie rental plans under the terms of a proposed class action settlement.

The class action suit, filed in San Francisco on Sept. 24, 2004, by Frank Chavez, alleges that Netflix failed to provide one-day delivery and unlimited DVD rentals, as promised in marketing materials. The company notified its members of the proposed settlement in an e-mail Wednesday and denied any wrongdoing or liability.

Under the settlement, current Netflix subscribers who joined prior to Jan. 15, 2005, are entitled to a free, one-month upgrade in their service plans. For instance, subscribers with plans that allow for three DVDs at a time would be able to get four. Subscribers who joined prior to Jan. 15 and canceled before Oct. 19 are eligible for a free, one-month membership.

But if members aren't careful, they may end up paying for the upgrades. After a month of free benefits, the company will begin charging subscribers regular rates for the upgraded or renewed services, unless they proactively cancel or modify their plans.

Netflix, based in Los Gatos, Calif., has agreed to pay Chavez $2,000 in addition to $2.5 million for his attorneys' fees. More details on the settlement terms can be found on the Netflix Web site.

7 comments

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Ridiculous
This is the typical case of an idiot and a crook attorney looking to make a quick buck. Come on now, "unlimited" means, you can rent as many as you like, as long as you return the ones you've already received. Netflix delivers the next day 99% of the times. Don't forget that their shipment efficiency is in the hands of the US Postal Service. Compared to Blockbuster.com, Netflix is the best out there. Netflix has more distribution centers than Blockbuster.com, therefore, movies are delivered faster.

I've received the message from Netflix regarding the possible settlement, I'm not doing it. I like Netflix and love their service.
Posted by Dead Soulman (246 comments )
Reply Link Flag
attorney fee
I agree with you on this.
I think attorney fee is really too big.
Something wrong with the system!
Posted by vladperl (8 comments )
Link Flag
personal experience
however, your personal experience with netflix may be completely different from that of another individual. i like netflix, also, even though they have not delivered according to their claims. that's why companies must be very careful of what they promise consumers and deliver accordingly or face the consequences of false advertising. if it's not accurate, then don't claim it.
Posted by brothermoon (11 comments )
Link Flag
Netflix non-existant Customer Support
In response to your last post:

I have been throttled by Netflix since September. I get 3 DVD's at a time, and to get the DVD's across town, it sometimes takes 3 days. If ythey are not throttling my account, they are sending me DVD's from the East Coast, and I doubt that. Ever since the lawsuit has been settled, I have been getting my DVD's the next day, and I am no longer on the long list, but now I am on a short wait.

Imaging that! They have been doing this since I started, and I was about to quit.

Talk about customer service: It SUCKS! Whenever I question them about getting my DVD's late, I get what looks like a computer generated response, with no reason why, and it is always 3 days late. They have never answered any question I have sent them.
Posted by cbcooper79 (2 comments )
Link Flag
Stupidest lawsuit in the history of lawsuits...
And a "settlement" that will end up COSTING some of the plaintiffs just underscores the lawyers' greed.
Posted by M C (571 comments )
Reply Link Flag
"as many movies as you want"? BULL FECES
Netflix not honoring the promise "as many DVDs as you want" is FRAUD plain and simple. With 3-discs out at once, and returning movies the same day they're received one SHOULD be able to rent in excess of 25 movies/month. Whatever BULL FECES reason they offer up for not fulfilling this promise constitues at the very least BREACH OF CONTRACT. Do you smell another class action lawsuit??? I do.
Posted by SmithBarney (14 comments )
Reply Link Flag
Netflix-Deception business method
I wonder what are the benefits of the class action to Netflix customers?
For the last month I have been treated exactly how it was described in a law suit. Settlement did not seem to change business practice.

When business lies to its customers promising same-day service, unlimited rental,
do we call it a business model?
No, we call it Business-method and even patent it, and then sue competitors for stealing genius idea.

I find this approach to business and law very creative. Bravo!
Posted by shallm (3 comments )
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