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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.
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NetFlix Inc., subscriber, class action




I've received the message from Netflix regarding the possible settlement, I'm not doing it. I like Netflix and love their service.
I think attorney fee is really too big.
Something wrong with the system!
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.
- Netflix-Deception business method
- by shallm May 2, 2006 7:19 PM PDT
- I wonder what are the benefits of the class action to Netflix customers?
- Like this Reply to this comment
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(7 Comments)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 it?s 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!