About That Netflix Settlement...

Despite no longer subscribing to their services, on Wednesday we received this funny e-mail from Netflix with the subject "Notice of Class Action Settlement. Please Read." Apparently as former subscribers to Netflix's services we were automatically enrolled in a class action lawsuit against the friendly red envelope company. In fact, the suit had already been settled! All we had to do was pick one of four options: 1. Sign up for the benefits (the benefits being one free month with +1 videos at a time for current subscribers or one free months subscription for former subscribers) as part of the settlement. 2. Do nothing. 3. Exclude ourself from the the class or 4. Make an objection to the settlement in court.

Since we no longer subscribed to Netflix and didn't want to go through the hassle of claiming a free month of dvds only to drop the service again at the end of the month, we promptly forgot about the whole thing. But then in the comments on sfist we found a link pointing us to netflixsettlementsucks.com which lists some curious facts about the suit. For instance, if you accept the free month of upgraded service "you will be put on that upgraded plan at the end of your free month and your bill will increase unless you cancel!," the lead plaintiff in the case gets a $2,000 cash "bonus" from Netflix and the kicker, the lawyers for the plaintiff get "a token amount of money... wait for it... The lawyers get $2,528,000." Really. It's all in the pdf of the long form notice of the settlement. Netflix will upgrade your service and then keep it upgraded unless you go back and degrade yourself (kind of, they will at least send you one reminder e-mail). And really, the lawyers are getting that much money for working on a case that "alleges that Netflix failed to provide "unlimited" DVD rentals and "one day delivery" as promised in its marketing materials."

The more we think about it the whole thing the more we don't particularly want to be a part of a class of people who sue over such obvious advertising hyperbole. In fact, we don't want to be a part of that class so much that, if we didn't have to actually write a letter and then physically mail it to California to get out of it, we probably would "exclude ourselves from the class." If only there was a way to do it online... Oh wait, it looks like pissed-off Chris over at "the Netflix Settlement Sucks" is working on that too. Maybe we'll exclude ourselves yet.

But that's just us. What do you think of the Netflix Settlement?

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By Garth Johnston in Arts and Events on November 5, 2005 7:04 AM

Comments [rss]

bann

It would seem that Netflix is quick to send out movies to some areas, while other areas like mine wait months for the same movie. Recently, friends and I requested the same movie on the same day, different distribution centers. They erceived their movie immediately, while I am still waiting (months)for the same movie. All for the same monthly fee. While this company obviously treats me a a lesser individual, I live in a rural setting with no other options. So unfair...

Matttt

There are lawyers out there who specifically focus on inconsistencies in advertising copy. If there's a single mistake in the copy, they file a lawsuit.

Charming world we live in, huh?

Dick the Butcher

Just like I told Jack Cade and everyone back in the Henry VI days, we really need to kill all the lawyers. These guys should be ashamed of themselves.

S.D.

It's interesting, but Netflix seems to be like Opera: Either you love it or hate it. The few people I know that have it have it have no middle ground.

I can't find the name of the book, but there was once a Book written that gave lawyers advice on how to build a business out of Class action lawsuits. Anyone know the book?

autumn

I left netflix a while back because of their failure to deliver unlimited dvds and I'm not sorry I did. After reading their funny email, I thought that it was quite nervy of them to make such a meager offer to get former subscribers to sign up again!

Jeff D

A couple years ago, I was having repeated, serious problems with a cell phone, and posted about it someplace. A little while later, I received an email from a lawyer who had filed a class-action suit against the manufacturer for this specific problem in multiple states, but their NY case had been thrown out. He was hoping I'd consider being the lead plantiff in a new NY suit. Though I was about to say yes, I suddenly remembered all the class action suits I'd been "a part of" (only because I didn't opt out of the class), and I realized that the best case scenario is that I'd *maybe* get a couple grand, the class would get something trivial, like a $20 rebate on a new phone, and the lawyers would make a few mil. Why bother?! Sure, the company is still punished, but until "the class" gets a fair piece of the settlement, I'm not going to participate in any class action suits. I'd consider opting out.