Netflix Fan: Frank Chavez v. Netflix Class Action *UPDATED*

Monday, October 03, 2005

Frank Chavez v. Netflix Class Action UPDATED

NETFLIX INC.: Consumers File Fraud Suit Over DVD Delivery in CA
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Netflix, Inc. faces a class action filed in California Superior Court, City and County of San Francisco by Frank Chavez, individually and on behalf of others similarly situated.

The complaint asserts claims of, among other things, false advertising, unfair and deceptive trade practices, breach of contract as well as claims relating to the Company's statements regarding DVD delivery times. The complaint seeks restitution, disgorgement, damages, and injunction and specific performance and other relief.

Case management conference was held on March 23,2005 before Judge Thomas J. Mellon, Jr. The conference will be continued to May 11,2005.

The suit is styled "FRANK CHAVEZ VS. NETFLIX, INC., A FOREIGN CORPORATION et al, case no. CGC-04-434884." Representing the Company is Keith Eggleton of WILSON SONSINI GOODRICH & ROSATI, 650 Page Mill Road, Palo Alto CA 94304-1050 USA Phone: (650) 493-9300. Representing the plaintiffs are Adam Gutride LAW OFFICES OF ADAM GUTRRIDE 835 Douglass Street, San Francisco CA 94114 USA Phone: (415) 271-6469; and Seth Safire, 6467 California, San Francisco CA 94121 USA Phone: (415) 876-4345.

According to the revised third-quarter guidance issued by Netflix last week, "Settlement expenses in the quarter are expected to range from $3.0 million to $4.0 million. The settlement remains subject to court approvals."

Usually in a class action suit, there is some effort to contact the members of the class to give them an option to join the suit or to be left out of the suit. I am presumably a member of the class, since I'm a Netflix subscriber. I have never been informed of my options regarding this action. Have you?

*UPDATE: Settlement information has been emailed to subscribers and a Web site has been set up. You can read the email here.

69 Comments:

At 10/03/2005 1:24 PM, Aaron said…

I have not been contacted, and its a frivoulous lawsuit. These kinds of suits work my nerves. The lawyers make out like bandits while the consumer is used.
At 10/06/2005 6:22 PM, keithhr said…

fact is I've been a netflix customer for 3 1/2 years. There has been a steady, predictable errosion of their services. Movies that used to be logged in the day after I sent them back now usually take 2 to 4 days. My que will say next available movie to be shipped today, late in the day will say it will be shipped next day. If I have two movies going out, I will get them delivered on different days, one afte the other, never used to happen. I won't bore anyone with more details, it is totally obvious that I have been restricte in what they will send.
one more example, I had a tv series, star trek enterpise in my que for weeks. the day the movies were released, at the end of the day I was expecting 4 movies to be shipped to me. It said long wait for all of them in my que. Since I also have a blockbuster account, I put them in my que and were shipped right away. Next morning it indicated that they were now available. Since it was the first day they were available, there couldn't be a long wait on a tuesday and they became available on wednesday;
At 11/01/2005 5:38 PM, Dano2k3 said…

I too have not been contacted. Here is a typical example as i ran into againg. On 31 Oct 05, i recieved notice, my last two DVD returns were received. Today i got a notification one more of my DVD rentals had been returned. The problme is all of the as of now are marked to be shipped out tomorrow. So the 2 DVDs returned and received by netflix on monday will not ship out 2 days after being received.

Anyone feel this if faudulant on Netflix part? Anyone else remember Netflix's ads as I remember when i signed up for the service? The ad on T.V. made it very clear... No late fees and "AS SOON AS" we recieve your last returns we will send out your next movies in your queue "AS SOON AS we receive your returns...". I have a mail thread asking going back and forth with Netflix's customer support what "AS SOON AS" ment. I would love to get in on this lawsuit, please contact me at:

dano2k3@hotmail.com

Thanks and have a great day.

dan d;)
At 11/01/2005 8:27 PM, FPASAUMP said…

I can't believe all the whiners. If you think the service is bad stop complaining and get a regular membership, spend $5 per rental, spend $2 plus per gallon of Gas, Spend hours looking through the Racks of Movies, and finally get a life.
At 11/01/2005 9:59 PM, unhappyWithNetflix said…

keith, that's EXACTLY what happened to me and i've been steamed. i emailed them many times about it and they just responded with templately answers that had nothing to do with my questions.

hats way off to frank chavez for putting his time where his money is!
At 11/01/2005 11:08 PM, richard said…

I just received my email for this. So, I get 4 rentals instead of 3 at a time for 1 month. Whoopeee.

Here is what it says:

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 www.netflixsettlement.com.

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 www.netflixsettlement.com. 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 www.netflixsettlement.com).

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 www.netflixsettlement.com.

SRC: 10312005CAS
(c)1997-2005 Netflix, Inc. 970 University Ave., Los Gatos, CA 95032
This message was mailed to [XXXX@ASDFASDF.ORG]
At 11/02/2005 12:51 AM, Justin said…

I just got the notice today as well. Frivolous.
http://www.geektronica.com/2005-11-01-stupid-netflix-class-action-lawsuit
At 11/02/2005 4:05 AM, bmxbabe said…

I got the notice as well & I am definitely going to object to this ridiculous & frivolous lawsuit which is going to jack up our membership fees. Before filling out any forms, I always read everything. Anyways, what made me really disgusted was page 13 of the settlement agreement states 'subject to court approval, Netflix agrees to pay Class Counsel up to, and will not contest the reasonableness of, $2,528,000.00 in attorneys' fees and costs'. It also stated 'subject to court approval, Netflix shall pay a $2,000.00 incentive award to the Class Representative'. This Chavez person & their lawyers are so sleazy & the only 'incentive reward' that Netflix members will receive is a stupid 1 month upgrade. I will definitely pass this up & will file papers with the San Francisco court to object to this. We need to fight these scumbags. The settlement agreement said that if 5% or more of the class objects, then this lawsuit will get thrown out. Just imagine how much our membership fees will go up if Netflix has to pay some sleazy slimeball losers over 2 million dollars. If Chavez wasn't happy with the service, he should have canceled his membership. Netflix is so consumer friendly. It's not like he was under some contract. He could have canceled at any time.
At 11/02/2005 6:52 AM, terry said…

HOW EMBARASSING! This just goes to show how spoiled rotten this Country has become. We're talking about MOVIES here folks. Maybe some of these people trying to justify getting involved with this ridiculous lawsuit should try standing in line for HOURS for a loaf of bread or a blanket before being turned away without either! How about having all your posessions destroyed and members of your family lost and wonder how you will survive the winter. Well, it's coming folks, and I doubt very much you will be thinking of a movie that showed up a day late. What a bunch of whiney whimps! I agree with the other posts.... GET A LIFE. Shame on any of you agreeing with this lawsuit and pleeeeze just TRY to stop thinking of your greedy selves and TRY to appreciate what you DO have for a change. God bless America? Your "blessings" have become your curses for they have made you ungrateful. sheesh!
At 11/02/2005 7:02 AM, darling said…

I received my email about the proposed settlement today. On one hand, it does seem somewhat frivolous, but in the light of all the other companies now offering similar unlimited DVD rental, it was a little misleading what Netflix was really offering. Not to say I was ever confused, but I'm giving those people the benefit of the doubt.

After reading the details of the settlement, I suspect that Netflix won't come out too bad. Yes, they have to pay the legal fees of a few million, but as a subsciber and a member of the settlement, I automatically get a free one month upgrade from my normal 5 dvds a month to 6. AND, after that month is up, I have to specifically tell them to not charge me the higher amount from then on. So, I'll bet there will be plenty of people who don't notice right away that they are paying an extra $6/mo after their "free" upgrade.
At 11/02/2005 8:59 AM, nicknaack said…

Get a life! When the average American works 40+ hours a week who has time to watch 4 or more movies a month, let alone complain about how late their DVD arrivals are! Did anyone stop to think the mailman could be at fault????

These frivolous lawsuits are embarrassing. Why not make better use of your time and work for a living rather than sit on your fat ass watching TV and sue people for your money.
At 11/02/2005 8:59 AM, Lmwang said…

I received my class action notice today, and personally, the whole thing is just a crock of.... I'd like to know how Mr. Chavez was harmed by Netflix? Has he suffered great financial hardship? Has he experienced pain and suffering? Has he lost his spouse and family over this? Did he lose his ability to be gainfully employed? Did his dog run away?

It's obvious that Mr. Chavez has nothing better to do than tie up the courts in ridiculous lawsuits and all this is really going to do in the long run is drive up costs for loyal, satisfied Netflix customers in one way or another. So what, he'll get another two or three movies in the mail, but put a multi-million dollar hurt to a company that I personally have never had an issue with.
Maybe we should all sue Mr. Chavez because we all feel harmed in some way by him.
I wonder what it was exactly that set Mr. Chavez off, because every Netflix customer I know has said they've never experienced a problem. The few times a DVD was reported as missing in the mail, Netflix responded immediately and corrected the problem. I even received a broken DVD once, and got an extra DVD for my trouble.
Mr. Chavez's actions are typical of what our society has become, a bunch of liberal whiners who have this incredibly over-inflated sense of entitlement, and of course, the shameless opportunist lawyers who's sole purpose is to exploit, well everyone.
I'm standing behind Netflix and waiving my extra DVD.
What a sad, sad, pathetic situation!
At 11/02/2005 10:00 AM, mistress said…

Please note that our free one-month upgrade will continue at full price unless we cancel it.
At 11/02/2005 10:14 AM, Codeman said…

This lawsuit is just some guy who wants to get money for nothing because he is too lazy to get a job. I have been with netflix since they started and there service has greatly improved over the last 3 years getting you DVD's faster.

You can't have a one day turn around with snail mail. Come on guy get your head out of your ass and use common sense. There are problems like getting broke DVD's in the mail, well that's not their fault when the DVD is being handeled by many people and machines in the mail service on the way to and from your house.

In fact this is a great way to save money from regular renting if you watch alot of movies.
And there arn't any late fee's becuase they bill you on what you have out. I have never been chagred late fees and I have had movies out for over a month in some cases.

And that's my 2 cents!!

Codeman
At 11/02/2005 10:24 AM, Dane said…

just received an e-mail from Netflix regarding a settlement for a class action suit. In the e-mail, they promise you can get a free month of "upgraded" service...

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.)

Great, right? ...But then at the end of the e-mail it says this:

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.

So basically, they're upgrading you for free, as a result of their lawsuit loss... But after the free month, they keep you upgraded but charge you more $$ for that upgrade (instead of automatically downgrading back to the level of service you were at). What a SNEAKY sham.... (I imagine most don't read the full text of the settlement to figure this out).

More over, I have a "grandfathered" plan, and as far as I know there is no plan that is an "upgrade" over mine... What do *I* get? It doesn't really say, and the full text of the settlement is unclear on this (no mention of grandfathered plans and whether or not I'll be able to downgrade back to the grandfathered plan after.. If I take advantage of this settlement, will I forever lose my grandfathered plan?).
At 11/02/2005 10:27 AM, ThomasDodd said…

This is one of the most ridiculous things I've seen yet. As a company Netflix is one of the best. I've been a member since 2000, almost 6 years. Since back when the options were 4 or 6 at a time, everything shipped from CA, and there was no other mail-order-rental service. I curently pay less than when I joined, and less than other signing up for the same number today. Thats service, and respecting long time customers. I wish my satellite provider though that way.

I'm quite happy with the improved service. Turnaroud time is much faster now. I remember 3+ days for delivery. Now it's ofter one day. And my cost have gone down. I tried another service once there were 2-3 others. Netflix was far better in all respects. Chavez and his lawyers need to be counter sued for damages to all the satisfied customers resulting from the crap.

Anyone know the requirements and cost to object? The e-mail said one must file legal papers in SF court. Hard to do form Mississippi :(
At 11/02/2005 10:28 AM, goodalle said…

It may be a frivolous lawsuit, but the remedy strikes me as appropriate. I got the class action settlement in my email this morning and had to check to make sure it was legit. Looks more like typical netflix spam: One month free upgrade for one DVD more? The "settlement" is no more than the same terms that Netflix has used as an advertising "hook" to sign up new users for years. Reminds me of the old confucian parable of "The Stolen Smell". Greedy restauranter takes poor student to court after hearing him say he eats his bowl of plain rice outside the restaurant, where the smells of rich foods greatly enhances the rice flavor. Judge finds the student guilty as charged. Punishment: the restauranter gets to hear the sound of coins being clinked in the student's hand.
At 11/02/2005 10:32 AM, Dane said…

I just received an e-mail from Netflix regarding a settlement for a class action suit. In the e-mail, they promise you can get a free month of "upgraded" service...

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.)

Great, right? ...But then at the end of the e-mail it says this:

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.

So basically, they're upgrading you for free, as a result of their lawsuit loss... But after the free month, they keep you upgraded but charge you more $$ for that upgrade (instead of automatically downgrading back to the level of service you were at). What a SNEAKY sham.... (I imagine most don't read the full text of the settlement to figure this out).

More over, I have a "grandfathered" plan, and as far as I know there is no plan that is an "upgrade" over mine... What do *I* get? It doesn't really say, and the full text of the settlement is unclear on this (no mention of grandfathered plans and whether or not I'll be able to downgrade back to the grandfathered plan after.. If I take advantage of this settlement, will I forever lose my grandfathered plan?).

The web site for this mess is at www.netflixsettlement.com

and »www.netflix.com/SettlementCertification
At 11/02/2005 11:01 AM, blujaded said…

Does anyone remember when Netflix LOWERED it's prices for basic service? I have been a subscriber since they started, and any problems I have ever had were handled promptly and professionally.

Why didn't Mr. Chavez sue his mail carrier? I know that any delays I have ever experienced with Netflix were the fault of my pokey carriers. He made a mere $2000 (he'll need that for $5 rentals from Blockbuster), while his attorneys made almost $2.5 MILLION!! For those of you complaining about your service now, just wait - who do you think is going to pay for the $3-4 Million dollars that Mr. Chavez complaints will cost Netflix?

Unfortunately, we live in a world of "I want what I want and I want it NOW - or I'll SUE!" For all of you up there bitching about your service - get lost - MORE MOVIES FOR ME!!!!!!!!!
At 11/02/2005 11:05 AM, Sneaky91 said…

Whaaa, Whaaa, Whaaa! I did'nt get to watch 500 movies this month! Whaaa! I'm such a loser that I need to watch 500 movies a months as a form of escapism from my horrible life. Whaaa! One day I only got to see 2 movies and had to think about my miserable existence for the other 20 hours of the day. Whaaa! I'll show Netflix. I'll sue them for making dwell on how miserable my life is for a longer period of time than if I had another movie that day. Whaaa!

What a complete fricking ass this Chavez guy is. He must be a blockbuster employee and is on a mission to bring down Netflix.

I for one am NOT going to take advantage of the class action settlement. I barley have enough time to watch the movies I have. I sure do not need one more. Netflix has been great, and I do not think they need to be punished for some fools crappy life.
At 11/02/2005 11:10 AM, honeybee8804 said…

I refuse to gain any benefit from this ridiculous lawsuit! The truth is, Netflix revolutionalized movie rentals and it deserves credit for that. I've also found them to be extremely accomodating when I've lost a movie, and fair in their pricing. If you really need to be outraged by a company you do business with, there are plenty of worthy targets: banks and credit cards to name a couple. The people that are outraged by Netflix for one reason or another should think about this: if you expect the companies you do business with to treat you fairly and equally YOU need to reciprocate! It isn't a one-way street - consumers / companies can only benefit one another if both parties play fair. I say, let Mr. Chavez fight this silly battle by himself while the rest of us stand up and support a company we intend to have a longstanding relationship with.
At 11/02/2005 11:36 AM, idahogie said…

I'm with you fellas.

I plan to object to the settlement and help get the case thrown out of court.

Funny thing is, it does bother me that it takes only 2 days to return a movie, but 3-4 days to receive one. I think that Netflix could improve their service. I know they aren't really motivated to hurry those flix out the door. But this lawsuit does nothing to motivate them either, and will only lead to increased service fees for users.

In general, the service has been good, and I think my rates have gone down twice since 3/2002.

I'll send a letter to the SF Superior Court, referencing the case number. But if anyone here knows how to 'officially' file legal papers, enlighten us, please.
At 11/02/2005 12:17 PM, pekerhed said…

Yeah, I just received my email this morning regarding the CHAVEZ vs. NETFLIX case.
It's about time this issue was finally acted upon. In the past, I have sent many emails to Netflix asking them why their customer service has deteriorated so much over the past couple of years. But they never gave me any answers. When I first joined about two years ago, I signed up on the 3-PLAN. I was averaging about 17 DVD per MONTH. But now, I'm averaging about 6 or 7 per MONTH. ..and on top of that, I average about ONE CRACKED/DAMAGED DVD per MONTH. That's quite a drop in service. Those numbers should eliminate the term of me "WHINING". Its just a fact of Netflix not keeping up with the growing customer numbers.
AND I doubt that this settlement will solve anything. So for ONE MONTH we'll get 4 DVD's out at a time. With the way Netflix has been working lately, that will only mean getting 2 or maybe 3 extra DVD's during that period. That's not good. If this settlement was to even it up, they would look at the numbers and probably come up with something like 2 FREE Months for members who have been around long enough to notice the deterioration in Netfix customer service. But HEY, I'll take what I can get. WE DESERVE IT. Netflix has totally taken advantage of its customers.
If you like to be taken advantage of, then that's fine, don't call us "whiners" for wanting what we paid for.
The reason alot of us joined Netflix is for the selection, convenience, and the amount of DVD's we can get for the buck. But when Netflix does not adjust their STOCK and WORKFORCE to the growing number of members, we lose all of these reasons to use Netflix. When I see that my monthly activity goes down to 6 DVD in one month, finding that I am having "very long wait"s on even popular titles, and then receiving a growing number of "damaged" DVD's, the advantage of Netflix over the local video stores really disappears. The reason some of us have stuck around is the hope of Netflix finally getting back on the ball and becoming what it used to be..THE ULTIMATE SOLUTION FOR MOVIE JUNKIES such as myself. Netflix used to be OUTSTANDING over a year ago, and maybe a court action such as this one will get them back on track. So I am sticking around to see if that happens.
I would at least like to see Netflix be honest with us. I live about 5 miles from a Netflix distribution center, so there's no reason it should take over a week to get a popular title from them. That's just poor customer service and is not according to their terms and conditions. It's just false advertisement.(referring to the "next day" policy).
Call me a "whiner"...Call me "aware"...I'm just sounding off.
I respect all views on this blog and don't mind sharing mine.
At 11/02/2005 12:40 PM, stella said…

I dumped Blockbuster and went back to Netflix about 5 months ago and my local Netflix facility may be closer than those of you that are not happy. Or maybe my mail system is better. I drop my movie at the post office and within 48 hours it has been received and within 2 more days I have a movie. I am never movieless on my whopping 3 at a time plan. But I also work and watch TV sometimes. This lawsuit is stupid, makes me want to puke and the fact that this is the only thing in someones life to have a mental breakdown over makes me want to kill myself. For those of you that don't think this lawsuit us frivolous, I am sure we will see you in court because your chia pet head had bald spots still within the expected fill out time. For those of you that think that Netflix deserved to be sued, well, you get to pay the $2 mil in lawyer fees over time. And, I guess you missed that our country is a mess, Mississippi is completely devastated from Katrina (Because I am sure you know that HANCOCK COUNTY Mississippi was ground zero for Katrina NOT New ORleans) No one in your life has breast cancer. No one needs extra tutoring or a little extra time with you. Maybe you could go volunteer at the local food pantry when your movie is a day late. I am sure that movies are your life and they are just like a kidney, they should be on time everytime, god forbid you get your lazy ass off the couch and go rent every once in a while.

And for those that whine service, service sucks everywhere. It has gotten better for me. Netflix has opened 2 new distribution centers within 100 miles of me. I would gather that Oh, and why don't you go try Blockbuster.com and then come back and tell us about their GREAT service.

Here is my experience for 30 days. I watched the movie the exact day I got it and always drove it to the actual post office (as I go each day for my business mail!) Both plans were 3 at a time.

Blockbuster -6
Netflix-16

I see the passion, now direct that passion towards a useful cause. That is what I like to do with my time.

I actually just googled the lawsuit to see if it was a hoax because it appears to me to be completely ridiculous.

Oh, and the settlement, the extra movie for a month, if you sign up for it, your account will stay at the higher subscription and you will be charged for the higher amount, and THAT will pay for the lawyers fees.

BAH!

Oh, and the NO LATE FEES at Blockbuster, well after 7 days you get charged the full price of the movie, so I am sure I can find someone to take on that lawsuit, right?
At 11/02/2005 1:15 PM, Spike said…

I've had Netflix for years. About 98% of the time my movies ship the same day they receive them. If I send my movie on a Monday, they receive it and ship on Tuesday, my new movies are at my house Wednesday. The other 2% there's a extra day. I don't see what the problem is. There is a major factor here -- the US post office -- which may be delaying some people's DVDs. I agree this is frivolous.
At 11/02/2005 2:15 PM, toby said…

Frank Chavez is an IDIOT. There is nothing else to say.
At 11/02/2005 3:19 PM, Meredith said…

Why on earth are people criticizing Frank Chavez? What has he done to you? If you don't want to participate in the settlement, do nothing.

However, I am also presently writing a letter to Chavez's attorneys, asking why on earth they would have crafted or agreed to a settlement in which Netflix comes out on top.

I am quite happy with my Netflix service, by the way.
At 11/02/2005 3:24 PM, Meredith said…

By the way, those of you who expressed an interest in getting the case thrown out - that kind of thing costs money. Have you noticed that Chavez had to pay $300 to get the suit started in the first place? Spend 37 cents to get yourself out of the Class if that's what you want, but other than that your most effective weapon is e-mailing your complaint to the attorneys.
At 11/02/2005 4:57 PM, HalArmstrong said…

Many of the comments I read seem inappropriate to the situation.

Over the last 1.5 years or so, Netflix has increased their profit margins by alternating between two practices [A] Getting a DVD return on Monday and not saying they received it until Tuesday or Wednesday, and [B] acknowledging they received it but then sticking you with a "Shipping Tomorrow".

Yes I suppose Netflix can do anything they want, but if they want to limit subscribers to 12 movies a month on the 3-out-at-once plan, why not just be honest about it and say so?

Trust me. There is nothing wrong with the mail service (99% of the time). I drive past the Netflix PO Box post office on the way to work. There is no way it takes 2-3 days to get from the PO counter to Netflix's PO box is the same building!!!

I'd rather have an apology from Netlix for blaming the postal service and some truth in advertising -- Like 3 out at a time up to 12 a month (or whatever) instead of jerking their customers around with excuses.
At 11/02/2005 5:05 PM, Sneaky91 said…

I have never had a problem with their delivery. I put one in the mail on Saturday, they recieve it Monday, ship it out Tuesday, and I have another one on Wednesday. One day turn around is pretty darn good if you ask me.
At 11/02/2005 5:13 PM, HalArmstrong said…

Netflix runs like a fine watch until you rent more than 12 or so per month -- then the "throttling techniques" kick in. If you rent less than 12 per month you may not know what others are talking about.
At 11/02/2005 5:16 PM, HalArmstrong said…

Also, they are good to anyone at first no matter how many you rent, but the throttling techniques kick in after a few months of heavy renting.
At 11/02/2005 5:34 PM, Dirty Kafir said…

I filed a similar complaint with the Texas Attorney General. The problems with the shipping dates do not effect everyone, but allow me to explain what has happened with my account over the past eight to nine months. It may sway your decision.

I've been a Netflix subscriber for close to two years now, and only in the past eight months or so were movies sitting in the Netflix shipping list for a period of two days or more. If I sent a movie in on Monday, they would receive it Tuesday, but not ship a movie out until Thursday or sometimes Friday. Because the movie took one day to reach my household, the movie shipment was not delayed because the movie was not available at the nearest shipping center per the agreement we all signed.

I contacted Netflix regarding this issue this past March after a couple of months of waiting for the problem to fix itself. Email contact did nothing other than a copy and paste of the user agreement. I called them and was told on the phone that Netflix purposely witholds shipping movies to some customers because they deem they rent too many movies. I asked the man what is the average and he responded the monthly average for a 3-at-a-time agreement is 8, therefore my 12 per month viewing pattern is above the average. Because I was above the average, they held off shipping movies to me because, in the customer service rep's own words, I was "deemed a high maintainence customer" simply because I rented on average four more movies per month that most people on the same plan.

We all know the agreement specifically states an unlimited program, and technically it is. That is unless you rent more than the average customer then you are witheld the service you are paying for intentionally.

What's odd about this is that my brother lives about 15 miles away from me and has no problems like many of the commenters here have no problems. I asked why this was the case when I was on the phone and he told me it was due to my scaling back from the 5-at-a-time program to the 3 in December of 2004. He directly told me it was some sort of punishment that they red flagged my account.

When I contacted the Texas AG's office, they told me I was one of many who complained. Netflix told me the same thing, but nothing has been fixed and at times I'm lucky if I get three per week giving five full days for shipment there, Netflix holding off on shipping and shipment from their center.

For those that have experienced a similar problem to mine, call them and tell them you want a discount. They'll give it after you outline your problems in detail.
At 11/02/2005 6:04 PM, INK said…

Frank Chavez, works for Netflix's competitors! This is the kind of crap that ties up our court system.
At 11/02/2005 6:07 PM, Ozark said…

I too got this email.

Now I havent been a Netflix member for a while. I went over to blockbuster after a test run with them had me getting DVDs quicker. Plus with BB you get the free rental coupons each month which i use to rent video games, which without the coupons would be $7.99 plus tax each. So in fact the coupons pay for the rental service.

But I am considering going back to NEtflix as recently BB's service has been deteriating. For example - Land of the Dead in my queue said it was shipped on 25th Oct and Estimated delivery time is 27th.. I did not get until the 29th.. They are sent 1st class so are BB holding on to the DVDs after they get scanned out? or is USPS really that bad.
At 11/02/2005 6:12 PM, HalArmstrong said…

Yes, I too swung over to Blockbuster (BB) for a few months. They started fine but started pulling the same foot dragging stunts as Netflix after a month or so. Since BB's inventory is not as stocked, BB was actually worse after a few months. I went back to Netflix as the lesser of two evils.
At 11/02/2005 6:15 PM, Spud said…

This post has been removed by a blog administrator.
At 11/02/2005 7:31 PM, Christopher Ambler said…

Might I refer you to http://www.NetflixSettlementSucks.com
At 11/02/2005 10:22 PM, Marcel said…

kill your television
At 11/02/2005 11:06 PM, Raheel said…

I definitely noticed the same problem with netflix's service. I would return my 3 rentals within two days of receiving them and this worked great for the first couple of months. Then, all of a sudden, there were huge delays in Netflix’s service. It would take up to three business days for them to show my movies as recieved and another three to ship the next ones. This was a drastic slowdown from what i was used to. It meant three moves a week for me, whereas before, I would easily get 6-9 per week. This bugged me so much that I cancelled my membership. I was getting at the most 12 movies a month, that is not my definition of unlimited.

I recently rejoined and started using the 2 at a time program. I have not seen a slowdown yet, and hopefully this lawsuit will prevent them from doing the same to me this time around. Good for Chavez.
At 11/02/2005 11:26 PM, stella said…

Okay, if this all is true then they suck. Maybe they are butt kissing me since I disappeared for a year.... but really doesn't it seem like alot of work to red flag you for renting to many or to slow you after a few months when you are not even under contract? Netflix loses its novelty for me after about 7 months anyway because there are only so many movies I want to watch, or my life gets too busy.

So I was a spaz on my last comment but I still stand by it and say if Netflix is so stupid what comes around goes around... they should not ruin a good thing. Everything gets old after awhile!
At 11/03/2005 5:32 AM, Dirty Kafir said…

I forgot to mention that a distribution center is around 10 miles away. If my problems occured sporadically, I'd blame the mail, but even up until two months ago the same delay in Netflix shipping occured. Alas it started back up last week though so the settlement won't do what we all want which is to fix the problem or have Netflix actually be honest and put a cap on the rental program.

To those that say the people who have had a problem with Netflix need to get out more, have no life or whatever, that may be true but we are paying the same ammount per month for a service that you are. That service isn't being given to all Netflix subscribers and they are purposely breaking their own stated rules in their current service agreement. When you pay for a service, you expect to get what you pay for.

I would hardly call my 12 movies per month average dropped down to six or seven due to their idea of what is acceptable for an "unlimited" and "one-day turnaround" program. No one should be happy with this, but unfortunately this is what Netflix has turned into. It seems like we all remember a time when Netflix was great whether we got 2 movies or 20 in a month's time period. That's the only reason I've stuck around, and I suspect it's the same for many of you.
At 11/03/2005 8:23 AM, Kent Sterling said…

These people are a bunch of scum!! . I'm lucky that I live close to one of their mailing centers (St.Louis) and that's all there is to it folks, if you live further away it could take longer to arrive at your mailbox. If what I'm reading is that the time it takes to get to "Franks" house is the main issue then we only have the judges to blame for even hearing this case. What has this country come to???!!! We should look at creating laws against this kind of "sue-for-profit" careers!!! Kent Sterling
At 11/03/2005 10:35 AM, mavfez said…

So I've gotten lucky? I've had really good service from NF. Maybe because I live in a distro city?

Can we sue Blockbuster for "No Late Fees..." Oh, wait...after 7 days there is now a "Restocking Fee" I guess it's free to restock if you make them do it right away.

Yes, I'm sure that Frank has nothing better to do than rent movies, and that's cool for him. Maybe NF needed to restate their terms, maybe they needed to allow people with nothing else to do to have as many as they want.
At 11/03/2005 5:32 PM, Tom Spears said…

Let's hear it for Frank! Here's a guy that is doing ALL of us a service, by making sure that the courts are filled with important cases. Let's stop wasting time filling the courts with frivolous cases like those that charge big corporations with ecological crimes, or keep unsafe products off the shelves. Let's not have time in the courts to consider hearing views on CEO's that bilk hundreds of millions from from the little stock holders. Let's instead take something like Franks case in there, so that people that are concerned that they are not getting enough quality time in front of the television can get an extra month with an extra dvd in their home. Much more important than something like whether Merck in selling Vioxx committed consumer fraud by selling a painkiller that has a slight side effect of increasing the risk of a heart attack and not mentioning it to anyone. Gosh, that would be so silly to spend time on an allegation that really doesn't mean much to anyone. People are much more concerned about how many movies they get to watch.

Personal message to Frank: are you pained by your inability to see as many movies in a month that you had hoped for? Have some Vioxx. Take plenty, there's always more. Wash it down with your favorite alcholic beverage for the best effects.
At 11/04/2005 1:09 AM, S_O_B said…

I always thought Netflix and Blockbuster.com were limiting the amount of movies they sent me a month. When I first signed up for Netflix a year or two ago I was getting movies twice a week sometimes. Now I am lucky to get them every week. I have been out of work for a while now due to an injury, so yes, I have a lot of time to watch movies. I usually drop the movies in the mailbox the same day they arrive. Before I noticed the slowdown, Movies I returned on Monday were replaces by Thursday, and they were replaced again on Monday. I had a little system going for a while until they alowed everything down. Now, everytime I send a release back the same day I got it I get an email asking me to rate the shipping process. All the email wants to know is when I received the movie. I answered the first few and everything got slower, so I no longer answer them anymore. After the service got too bad I decided to give up on Netflix. Now I am a month by month customer. If there are a couple of movies or a TV set that I want to see that I can not find at the video store, I will make a list and when the list is long enough I rejoin Netflix to get them. I would rather pay Blockbuster (local store) $27 and get as many movies as I want than pay $17 and only get 8 movies.

Anyway, I think Netflix is definately screwing their customers over, but this lawsuit is outrageous. If Netflix was smart they would have given this guy a refund, then he couldn't sue. You can not sue for damages if there are no damages. Honestly, I can't see where there are any damages, but who knows with the courts today. I think the amount being paid to the lawyers is just a tad bit high, about 2 million too high, and the customers will end up paying for it in the end. All that will happen now is Netflix will change their ads and terms of service (as mentioned in the email), the price will go up, and paying customers will still not get what they paid for.
At 11/04/2005 9:32 AM, Erika said…

Everyone-
If this is not the most embarrassing lawsuit I have ever heard of. People need to get a serious life! I have always had great service with netflix and totally intend in opposing this. Why should some scummy lawyer make out with 2.5 million dollars to represent a bunch of people that has no intentions in making our lives better. This world has become entirely too sue happy. Everyone has purchased a service that goes farther than just this company. They use the US Postal Service that is not always totally dependable. Who has not had a bill arrive somewhere late or had something lost? Once the movie leaves their hand or ours, we lose control of the situation. Anyone who intends of opposing the situation, please write and stop the situation at hand.
Totally embarrassed,
Erika
At 11/04/2005 11:02 AM, Edbag said…

I cancelled my Netflix membership because they began systematically withholding two DVDs when I returned four of them at the same time. I watched movies when I was on my cycling trainer. My guess is that when they implemented the plans, they assumed people would just hold the DVDs longer, not watch and return them quickly. Instead of changing the plans overtly, they resorted to morally questionable if not illegal tactics. This settlement doesn't punish them with the exception of the egregious lawyers fees. If anything, they will make more money because the renewals are automatic. It is like a corporation issuing a mail-in rebate. They know that people will purchase the item because of a rebate but they play the odds that a large percentage of people will forget about completing the paperwork or do so after the deadline. In my experience, Netflix is guilty of what this lawsuit claims; however, this settlement exhibits everything that is wrong with our legal system. I would prefer that they receive a fine for their shady business practices as a criminal penalty.
At 11/04/2005 10:36 PM, Lea said…

I thank God for once someone got off their duff, spent their time (and their own money) to stand up to companies like these. I had great service until I answered a survey asking me when I got my DVD's and how long it took to get back etc etc. After that my service STUNK! I would receive only three DVD's a week regardless of when it was sent. I no longer got my DVD's from the same place in the same state as I. I now got them from NYC, CA and even NE. Then to top it all off, two of my DVD's were 'lost in mailing' so I was only getting one at a time until I reported them missing. Miraculously they reappeared the same day I cancelled my subscription. I can watch three movies on a saturday with my family and had them back to them by tuesday EASILY.

I think I read somewhere that they had good customer service?? When I asked about the change from a dist center within a four hour drive from me (and may I state once again, HAD NOT A PROB WITH) to those in NYC, CA and NE they told me they could not pick one center to mail from. They mailed from whatever center CLOSEST TO ME that had that movie in?!?!? Did that make as much sense to you as it did to me?? I live in the midwest and CA is the only one closest to me with a movie from the early 90's?? C'mon. And for everyone blaming the mail service...I think that if it had just been a rare case I would have accepted that excuse. But time after time of getting hosed. I think the ones that are complaining and calling this 'frivoulous' and 'embarrassing' maybe need to start working for a living and quit using their welfare and childsupport to rent movies. I work for what I get and when I don't get what I pay for....P's me off. Hurray Chavez...kick butt!
At 11/05/2005 8:54 AM, Nina said…

Chavez next lawsuit is against Tide for not being “better than the last formula”
At 11/06/2005 9:40 PM, DancesWithDogs said…

Oh puleeaase. Chavez is a ninny if he doesn't have anything better to do than to file suit against Netflix. Gimme a break. I've been a Netflix subscriber for 5+ years and have never had anything but outstanding service. I was a teeny bit annoyed when they raised their rates, but it still beats the heck out of Blockbuster. The stock is incredible, and turnaround time on the east cost is terrific. As far as I'm concerned, it's still the best deal in town. I plan on opting out of the settlement because I just do not agree. Period. Why doesn't he go after some corporate entity that really deserves it? Say, oil companies?
At 11/12/2005 1:12 PM, Brand New said…

Personally, I'm not that disatisfied with Netflix's services, they provide a unique, innovative service that you probably couldn't find elsewhere. However, companies must be held accountable for their promises to deliver. Someone mentioned that Chavez did not have a contract with Netflix, that is absolutely untrue. If you are a customer, there is an inherent contract in which you agree to pay Netflix the monthly subscription charges and in return Netflix promises to deliver the said number of DVDs under the said process. Granted, the loss to the consumer is not devastating, if the principle of this contractual agreement between consumer and vendor is not upheld, the integrity of our consumer market is being jeopardized. Despite the severity of the failure to deliver as it affects your livelihood, it doesn't justify false advertising.

It may seem that the lawsuit is frivolous, but so is Netflix's proposed settlement. Think about this, the company has been accused of not sending out DVDs in a prompt manner. So theoretically, if this is the case, then what good is a one DVD upgrade if they can't deliver it to you. By the time you'd receive your extra DVD, the month may already appear to be coming to an end. Furthermore, if Netflix were to succesfully defend themselves in this lawsuit, it may mean they are not accountable for prompt delivery of their DVDs and would not have to send any additional DVDs under the upgraded service because they could sit on it until the month ends. Moreover, it's ironic that Netflix would try to quell their previous marketing ploy with another one. Isn't this the same thing as their free one month trial? In actuality, Netflix might benefit from this settlement more than the consumers, and I think it's absurd.

Therefore, I'm not going to accept the settlement, not because I don't agree with Chavez's case, but because I don't agree with Netflix's proposed settlement. And I'd advise others to do the same and avoid getting stuck with an unwanted upgrade fee at the end of the month in return for maybe 4 free rentals (if Netflix happens to send the DVDs out in time).
At 11/14/2005 7:13 PM, soDOsomething said…

Please, please, please TAKE ACTION!! It's very easy. If you don't care about the 2 or 3 movies you may receive out of this and would like to prevent fee increases, do the following:

Mail a letter with the following:

"Name, address, email address and telephone number associated with netflix account and a reference to this litigation (i.e. Chavez v. Netflix, Inc., Case No. CGC -04-434884), approximately when you became a Netflix member, if and when you canceled, and what service level you subscribed to and your objection/intervention, comments and supporting arguments

Address:

Clerk of the San Francisco Superior Court, Room 103
San Francisco Superior Court
400 McAllister Avenue
San Francisco, CA 94111

You must also mail or otherwise deliver identical copies of your written submission to Plaintiff’s Counsel and Netflix’s Counsel at the addresses set forth above. Your written objection or request to intervene must be received by the Court by January 5, 2006 (or mailed to them via first class mail on or before December 28, 2005). You cannot object or request to intervene if you have opted out of the class. Only those who remain in the Class may object to this settlement or request to intervene."

The honest person who takes no action gives his money to the scumbag who does.
At 11/15/2005 1:25 PM, Doug said…

Glad to see someone standing up to Netflix. Just wish the customers were gaining more from it. The Netflix service has gotten worse and worse. Movies do not ship out the next day and they often skip all of your top picks for some much lower. It seems more and more titles have long waits. I use to recommend this service to everyone and actually got many people started using it. I do not any more as the servie is terrible. Try contacting them or even finding a way to email a customer service rep with the company...near impossible. The service started out great for the first several month but sucks now and is getting worse.
At 12/02/2005 3:49 PM, Dave said…

I sent an email to the attorney over a month ago with a question and never heard back.

According to what I read in the Long Form Notice, ‘the upgraded service shall renew automatically (following an email reminder) at the end of the upgraded month at Netflix’s regular subscription rate for the upgraded program, unless and until the Class Member cancels the service or modifies his or her subscription.” Am I correct in understanding that my 4 at a time membership would change to a “5 at a time” membership and that I would then be upgraded and have to pay the current $29.99 after I receive one month upgraded service? Here is my more important question: If I register for this Settlement, do I lose my grandfathered plan of $17.99 for 4 at a time if I do not want the upgraded plan after that first month?

Am I in effect losing a benefit by registering for this Settlement?
At 12/02/2005 4:31 PM, Dave said…

Actually, I had more comments after reading several other entries here.

The more I think about this, the more I do feel this is a frivolous law suit. And it sure does seem like some kind of scam when the lawyers get paid that much money while we get only one free extra movie rental for only one month?

But I think what surprises me is the number of complaints I've read from many commenters above regarding Netflix service.

I've been a member for almost 6 years now. I have seen better service rather than a degredation of service in this time. They have opened distribution centers all around the U.S. and my return movies get logged in SO much faster than they used to. And I typically receive the new movies within one day, two at the most.

I wonder if some of the complaints need to wagered against the Post Office and not Netflix distribution centers. Or maybe the fault could be individual distribution centers which aren't managed as well as others.

While living in Orlando I could put the envelopes in the mail and I would get credit in one day, and movies usually shipped out the next.

Now I'm living in Richmond Virginia (also appears to have a distribution center here as well) and I can put the movies in the mail one day and not get credit for three days. One day I got the outer flap of a movie in the mail, without the DVD attached. (the post office must have sent the movie back, because I got credig for the return a few days later). While it seems to take a long time to get my movies logged back in, the time to receive them is usually 1 day, two at the very most.

A good number of the mailers I get now have been damaged in the mail. So all this makes me wonder if the local post office here in Richmond is taking longer to get the movies back to Netflix than the post office did in Orlando. And I rarely got damaged mailers in Orlando.

As someone else mentioned earlier on, if you have too many complaints about the service, go to Blockbuster.com or drive over the brick and mortar store to rent your movies. :-)
At 12/20/2005 1:16 AM, pluripotentate said…

hey, i'm excited to have four movies at a time that i'll have to cajole my boyfriend into watching with me. it will be one movie more frustrating than three.

i don't understand why the plaintiff in the case needed 12 movies at a time. and i've never seen a netflix ad promising "unlimited" movies (but i don't watch t.v.). you can only watch eight, maybe nine movies a day if you are utterly unemployed and never eat or leave the house. perhaps he was trying to rent them out himself to make a profit?
At 2/18/2006 11:35 AM, clubland2 said…

This post has been removed by a blog administrator.
At 2/19/2006 9:59 AM, Becky said…

I deleted clubland2's post because it was spam. If you need to see a copy of it, email me, and I'll send it to you.
At 4/20/2006 5:22 PM, Alicia77 said…

I have been a member for almost 2 years and I never had a problem receiving my DVDs on time. This lawsuit is a sad way to use our legal system. When I read about this lawsuit, I though this has to be a joke! It is ridiculous, petty, and a complete waste of time. There are more important things to spend time and money on in this world other than how fast did you get your DVDs! When I hear about "sue happy" people, it is very disppointing that this is what people think justice is about! These kind of people need to get a life. If you are that unhappy with the service you are getting, then you can cancel and go elsewhere. All this will do in the end is raise prices. That's not what I call justice!
At 4/20/2006 5:24 PM, Alicia77 said…

I have been a member for almost 2 years and I never had a problem receiving my DVDs on time. This lawsuit is a sad way to use our legal system. When I read about this lawsuit, I though this has to be a joke! It is ridiculous, petty, and a complete waste of time. There are more important things to spend time and money on in this world other than how fast did you get your DVDs! When I hear about "sue happy" people, it is very disppointing that this is what people think justice is about! These kind of people need to get a life. If you are that unhappy with the service you are getting, then you can cancel and go elsewhere. All this will do in the end is raise prices. That's not what I call justice!
At 5/12/2006 7:22 AM, LawnJockey said…

I would like to add my opinion but alicia77 put it so perfectly the only thing I'd like to add is I hope Frank Chavez gets hit by a bus. I love the Netflix service and now the price is going to go up all because this prick didnt get Cheech and Chong's Up in Smoke on time. Grow up a$$hole the movie sucked anyway. What are you going to sue for next? Coffee too hot? Too late a$$hole!! It's all just soo gross.
At 5/24/2006 8:19 PM, re85033 said…

Parasites... Just another outbreak of that legal disease that calls itself the "Consumer Class Action Lawyer." Just like their etiological relative, the common stomach flu virus, lawyers of this variety make me want to vomit... Who are they really representing and helping? THEMSELVES, to OUR money. No, thank you, I will not be responding. Not so that I can file a claim on my own as, Heaven forbid, I will lose my right to file such a claim if I don’t opt out. I will do so to try to assure these weasels won't get their "additional and enhanced fee" as mentioned in the amendment (that’s right, Mr. Lawyer, some members of the general public can read and comprehend legal documents). If there are any other sane and reasonable persons out there reading this and you also object to this legalized form of extortion, I would encourage you not to ‘opt out,’ but simply to ignore this and any other future frivolous class action suits, against whatever or whomever, “seeking to ‘vindicate and protect’” you... Well, please do that and make your views known to your political representatives... Just the 'Rantings of a sane man'...
At 7/10/2006 12:28 AM, Bayarealawyers said…

This post has been removed by a blog administrator.
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This post has been removed by a blog administrator.
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