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  1. #1

    Member Sales Rating: (11)

    Join Date
    Sep 2004
    Memphis Area

    Default Netflix Settlement: Anyone else get this?

    I got this today. I was a member before Jan 15, 2005, but have not had Netflix for several months now. The email "looks" legit, but I'm always leary of emails like this.
    Don't know if it is worth it to me to keep up with everything, but it is interesting.

    You are receiving this notice because you were a paid Netflix member before January 15, 2005. Under a proposed class action settlement, you may be eligible to receive a free benefit from Netflix.

    A class action lawsuit entitled Chavez v. Netflix, Inc. was filed in San Francisco Superior Court (case number CGC-04-434884) on September 23, 2004. The lawsuit alleges that Netflix failed to provide "unlimited" DVD rentals and "one day delivery" as promised in its marketing materials. Netflix has denied any wrongdoing or liability. The parties have reached a settlement that they believe is in the best interests of the company and its subscribers.

    Netflix will provide eligible subscribers with the benefit described below, if the settlement is approved by the Court.

    Current Netflix Members: If you enrolled in a paid membership before January 15, 2005 and were a member on October 19, 2005, you are eligible to receive a free one-month upgrade in service level. For example, if you are on the 3 DVDs at-a-time program, you will be upgraded to the 4 DVDs at-a-time program for one month. There will be no price increase during the upgraded month. (If you cancel your membership after October 19, 2005 and before you receive the upgrade, you will have to rejoin to get the upgrade.)

    Former Netflix Members: If you enrolled in a paid membership before January 15, 2005 but were not a member on October 19, 2005, you are eligible to receive a free one-month Netflix membership on your choice of the 1, 2 or 3 DVDs at-a-time unlimited program. (If you rejoin after October 19, 2005 but before you receive the free one-month membership, you will receive a credit for the free month when it becomes available.)
    These benefits will be provided after the Effective Date as defined in the Settlement Agreement. Your eligibility for the benefits is based on your membership status as of October 19, 2005. The full Settlement Agreement is available for review at

    You have four options to respond to the proposed settlement. You have until December 28, 2005 to make your decision:

    Option 1. Sign Up For The Benefit As Part Of The Settlement
    To receive the benefit, you must complete the online registration process no later than February 17, 2006, at By signing up for the benefit, you waive your right to bring a separate lawsuit against Netflix concerning the Released Claims (as defined in the Settlement Agreement found at

    Option 2. Do Nothing
    If you do not wish to receive the benefit, do nothing. You will not receive the benefit but will remain a Class Member. You therefore waive your right to bring a separate lawsuit against Netflix concerning the Released Claims.

    Option 3. Exclude Yourself From the Class
    To exclude yourself from the class, you must mail a letter by December 28, 2005. By excluding yourself, you preserve your right to bring a lawsuit against Netflix concerning the Released Claims. However, you will not get the benefit described above.

    Option 4. Make An Objection To The Settlement In Court
    To object to the settlement, you must file legal papers in the San Francisco Superior Court by January 5, 2006.

    To receive your benefit, you must register by February 17, 2006 as described above in Option 1. You will not receive any other reminders to register for the benefit. If you have registered for the benefit and your eligibility is confirmed, then you will be provided additional information by email following the Effective Date as defined in the Settlement Agreement.

    After the benefit period ends, the new or upgraded level of service will continue automatically (following an email reminder) and you will be billed accordingly, unless you cancel or modify your subscription. You can cancel or modify your subscription at any time.

    In addition, if the settlement is approved by the Court, Netflix will modify portions of its Terms of Use. Netflix also will refer to its Terms of Use in certain advertisements.

    To get more information about the settlement and procedures, and to take options 1, 3 or 4, visit

    SRC: 10312005CAS
    (c)1997-2005 Netflix, Inc. 970 University Ave., Los Gatos, CA 95032

  2. #2

    Member Sales Rating: (4)

    Join Date
    Aug 2002


    Oh, goody... you will be upgraded to receive 4 dvds at a time, for a period of one month.

    I don't see where Netflix is liable for anything....
    Ludicrous gibs!

  3. #3

    Member Sales Rating: (13)

    Join Date
    Mar 2004
    Bedford, TX


    Quote Originally Posted by nadams
    Oh, goody... you will be upgraded to receive 4 dvds at a time, for a period of one month.
    So will I now get 5 DVD for a month since I'm on 4 DVD plan? Big deal but hey, it's something. :)

    BTW, it's legit, link is on Netflix site as well.

  4. #4

    Member Sales Rating: (4)

    Join Date
    Dec 2002
    Location's in Egypt.


    Netflix is liable because they promised something and didn't deliver on that promise. That promise is clearly stated in not only the membership agreement but also, the advertising materials. While they may not be liable for deficiencies in the shipping companies they use, they are liable if they tell would-be customers that they can have a certain level of service provided to them. If netflix makes the statement and they can't back it up due to delivery issues, it's on them. The shipping company did not make the claims of service level that Netflix did. Netflix made the claims. Since netflix chooses to use a 3rd party for shipping services, they are effectivly a prime contractor that sub-contracts out a portion of it's work. That portion is shipping. Since Netflix, as far as I have seen, does not mention a single specific shipping company and you are not required to enter into a contract with that shipping company then Netflix's membership agreement covers that sub-contractor too. Afterall, you are the customer and Netflix is delivering a product or service to you. It doesn't really matter how Netflix goes about it, as long as the terms of the service agreement are met. If that means that Netflix out-sources shipping to one or more companies to meet the price quote for thier service and still meet the terms of the contract then that is how they will do it.

    Bottom line is Netflix promised a certain level of service and specifies it on a contractual agreement, they are held liable by a legally binding document in that contractual agreement. If that Chavez dude entered into the contract and he can show that he was not unreasonble in his expectations according to the agreement and special consideration for things like Hurricane Katrina are taken into account then, he can sue. He can sue because, under normal conditions, it should not be unreasonable for Chavez to expect the level of service he not only agreed to but paid for also. If he feels that Netflix has caused him duress in not holding up thier end of the contract through unmet shipping deadlines then he has a case and will most likely win.
    Last edited by Jstas; 11-02-2005 at 02:00 PM.
    You're just jealous 'cause the voices don't talk to you!

  5. #5

    Member Sales Rating: (4)

    Join Date
    Dec 2004
    flower mound, tx


    I worry that class actions like this will topple a great service. Blockbuster and me never got along. The Netflix service has seemed ok so far I know I got very tired of having the wife sent me to Blockbuster, and having to come home empty handed or some video she didn't really want. Now she just orders whatever lame chick flick she wants, and I don't have to get involved(more music time for me!).

  6. #6
    SRT Specialist
    Member Sales Rating: (17)

    Join Date
    Feb 2004
    Audiophile Hell.


    I really doubt that this or any other class action lawsuits will topple netflix.
    In regards to class action lawsuits,i've noticed that they usually offer a pittance in settlement to the affected consumers.
    It's only the attorneys that usually make a killing on class action suits.
    SRT For Life; SDA Forever!

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  7. #7
    Polk Engineer
    Member Sales Rating: (1)

    Join Date
    Apr 2004
    Annapolis, MD


    Got that too.

    Delivery hasn't been TOOOOOOOO much of an issue with me, especially since I live one town over from the local shipping location. Although on some occasions it has taken 3-4 days to get them to say "hey, we got the movies!". Generally takes 1, maybe 2, days. I have more of an issue with the amount of cracked discs I've gotten lately. Its like I get an extra penalty (in terms of how many movies I can receive in a month) because I get a bad DVD, have to send it back, then receive a non bad DVD.

  8. #8

    Member Sales Rating: (4)

    Join Date
    Dec 2004
    flower mound, tx


    The problem is for me that lawyers get away with this stuff over and over again. Class action is a gold mine for lawyers. They started one here in Dallas because a fax service was sending out season tickets ads for the Cowboys. How did they notify the parties affected by these "improper fax ads"? By sending out faxes, of course!
    They were going to sue the team for millions of dollars. I do NOT participate in any of these many invitaions for class action because the lawyers get paid by how many people get involved. And yes, companies have been hurt badly by some of these suits.
    Netflix is hardly a goliath. I would hate to see them get rolled over by Blockbuster because of this. Sorry for the rant!

  9. #9

    Member Sales Rating: (21)

    Join Date
    Sep 2002
    Deep Down the Rabbit Hole


    My mom and pop video store had the story plastered up all over about two weeks ago, the article said that Mr Chavez settled his case out of court with Netflix. Basically, he accused them of treating new customers much better than older ones as far queue lists getting fullfilled shipment times and so on. I got the impression they settled with him for some undisclosed amount of cash, and maybe this is part of the agreement.

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  10. #10

    Member Sales Rating: (1)

    Join Date
    Dec 2003
    Sooner Country


    Go for it. Their settlement entitles you to $2 to $6 worth of increased service based on your previous committment. For a single month.


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