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When we first reported Netflix's settlement in the case that exposed their strategy to delay shipments for high-volume users, our smarty-pants commenters pointed out The Netflix Settlement Sucks site, which lays out why their settlement wasn't all that. For example:
Subscribers who were customers before January 15, 2005 will get one month of free upgraded service. That is, if you can have three discs out at a time, you get upgraded to four, for free, for one month. Subscribers who were customers before January 15, 2005, but are no longer customers, will receive a free one-month membership. But wait, there's more! If you accept the upgraded account, you will be put on that upgraded plan at the end of your free month and your bill will increase unless you cancel! It seems to me that the number of subscribers who fail to cancel, forget, or just plain don't understand will likely make Netflix more money as a result of this "settlement." Indeed, it's not a settlement, it's a marketing campaign!
Happily, the objections raised by The Netflix Settlement Sucks, and the settlement was reworked. You should see Netflix's settlement site for all the details, but the main point is that if you choose the one-month upgrade offered in the settlement, you'll automatically drop back down the following month, and that if you're no longer a Netflix user, you get a free month that automatically ends.
To join in the class action suit and recieve this one-month upgrade, sign up here by June 26.
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Man oh man. The US class action system is the worst. I don't agree with the Republican party on taxes, deficit spending, defense, regulation of our sex lives, foreign policy, energy policy, or pretty much anything, but they get one thing right: the trial attorneys have created a system that does little but get them rich, and they've created a corrupt lobbying infrastructure to maintain this system at all costs.
When the lawyers (or the Green party) oppose litigation reform on behalf of "the little guy," try to find out how much $$$ the plaintiffs' attorneys make for every one of these bullshit settlements. Who's the little guy here?
Seamus, in response to your comment I disagree that trial attorneys, through class actions, have created a system solely to make themselves rich. Admittedly, class members in the Netflix case are not getting much, but how much should they get? What is the value of their loss?
Putting that aside, my purpose in writing is to offer you an alternative view of class action lawsuits. Their real value is rarely the amount of damages awarded each class member. Class action lawsuits benefit society in that they afford the citizenry a means of policing large corporations in matters where the individual "little guy" cannot and the government will not. With regard to the Netflix case, Netflix had a policy that was perceived as conflicting with its advertising. It is unlikely the government would have "cracked down" on Netflix for this, but as a result of the class action lawsuit Netflix has agreed to stop the suspect practice.
The Netflix case will have little impact on most people, but the behavior of corporations is often more sinister. A current example of a class action lawsuit involving a more serious issue is the Electronic Frontier Foundation's (EFF) class action lawsuit against AT&T for AT&T's collaboration in the National Security Agency's illegal domestic surveillance program. Essentially, AT&T has not only allowed, but worked with the government, to tap into the telephone and internet communications of its customers, and the customers of other internet backbone providers linked to it. This surveillance of U.S. citizens is still ongoing. Obviously, the government is not interested in shutting down such surveillance, so how else can we get justice? The class action lawsuit provides us a way to see that the matter is reviewed by a court.
Another way class action lawsuits are beneficial is where a large corporation discriminates against a class of its employees. An example is the class action against Walmart brought by female employees who, as a group, are paid less than men and are promoted less often to management positions. It is unlikely that the damages from a single female employee of Walmart will be high enough to compensate an attorney for taking the case. Furthermore, the courts do not have the capacity to try each case separately. However, by including the women as class members in one lawsuit, it is possible to not only compensate the class members for the losses they suffered due to discrimination, but to stop Walmart from continuing its discriminatory practices.
The Neo-cons would love to see the peoples' ability to gain justice through class action lawsuits disappear. Please reconsider buying into their propoganda.