Red Tape Chronicles: The Netflix Fix Is In
Bob Sullivan writes in The Red Tape Chronicles:
Tired of corporations with misleading advertising? Tired of class-action lawyers making big bucks and leaving crumbs behind for their plaintiffs? Here's a story for you.
DVD rental firm Netflix just settled a case involving accusations of misleading advertising. In the settlement, Netflix agreed to pay the lawyers up to $2.5 million. Consumers don't get any money. They get what's known in the class-action world as a "coupon settlement." Instead of money, Netflix customers get one free month's trial for upgraded service.
What's worse, that free trial sounds an awful lot like a marketing tactic. After the free month, consumers’ will automatically be enrolled in the upgraded service, and will pay for it -- unless they opt out of the upgrade. Sound familiar?
posted by Fergie @ 11/15/2005 07:39:00 PM
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