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Netflix Settlement

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Those who were members (or took advantage of the free one-month trial) of NetFlix prior to January 1, 2005 may be interested in becomg part of the class action lawsuit against the company. A plaintiff sued Netflix for false advertising involving their “unlimited movies” and “one-day delivery” claims and won.

The settlement is unimpressive; the company is offering a free upgrade (one more DVD out at a time) for one month, or a free one-month trial to former members. Here’s the catch: if you don’t take action to manually downgrade or cancel your subscription once that month is over, you will begin to be billed at the upgraded rate.

Updated July 16, 2010 and originally published November 2, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .


avatar Awfki

The supposedly injured consumers get basically nothing while the plaintiffs law firms get’s $2.5 million. Somehow that just seems wrong to me. I’ll be following the instructions at http://www.netflixsettlementsucks.com/ to opt-out. If enough people choose to opt-out the settlement gets thrown out.

BTW, I said “supposedly” injured because while Netflix advertising may have used a poor choice of words I think any reasonable person would understand that time and the US Post Office will limit the number of DVDs you can get each month. This suit was about the plaintiffs law firm getting rich.

avatar guest

Don’t become a part of the class action. Especially if you use Netflix and have been satisfied with their service. You will eventually pay for the cost of this class action suit and the settlement offer.

The only one who will come out ahead on this is the attorney leading the class action suit.