“The Federal Trade Commission is asking a California judge to reject a proposed class-action settlement between consumers and the Internet DVD rental service Netflix, saying the agreement ‘appears dangerously close to being a promotional gimmick.’ … In the proposed settlement, plaintiffs’ lawyers would receive $2.5 million, but the plaintiffs — in this case, the class of current and former Netflix customers — would receive either a free service upgrade for one month or a coupon for free service for one month. However, if customers receiving the freebies do not cancel the upgrades or service before the end of the month is up, Netflix would begin charging them for the extra services.” (Candace Heckman, Seattle Post-Intelligencer, Jan. 10). Ted thoroughly examined the defects of the settlement Nov. 3. The commission’s amicus brief is here in PDF format (courtesy Skip Oliva, who comments). Update Jan. 21: settlement delayed because of large number of objections.
“FTC objects to Netflix settlement”
“The Federal Trade Commission is asking a California judge to reject a proposed class-action settlement between consumers and the Internet DVD rental service Netflix, saying the agreement ‘appears dangerously close to being a promotional gimmick.’ … In the proposed settlement, plaintiffs’ lawyers would receive $2.5 million, but the plaintiffs — in this case, the class […]
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Skip’s objection–that the FTC should not intervene in a state class action–is a backwards view of federalism. California state courts should not be intervening in a nationwide regulatory scheme on behalf of the Netflix users from the other 49 states.
NetFlix offers a free two week trail period, and often through its affiliate program, you can get a 30 day trial period. As a current Netflix user I don’t really see much benefit to
taking advantage of the 1 month upgrade.
So by not taking advantage of this, does it put that money into the pot for the lawyers, go into the pot fot the other users, or get forfeited?
Bloggers Challenge Class-Action Settlement
I don’t usually link to registration-required sites, but this article is worth it (and the registration is not too intrusive). Charles Buck writes about the reaction to the Netflix class-action settlement, and makes this observation…
Update: Netflix settlement attorney fees likely to be cut
So indicated San Francisco Superior Court Judge Thomas Mellon Jr., who indicated he will not allow fees to reach the $2.53 million previously indicated. Objectors’ fees will be cut as well as the original attorneys,…