Chavez v. Netflix, Inc.

In this amicus brief opposing a proposed settlement of a class action by Netflix customers, the Commission raises two concerns. First, because the settlement involves limited-time free service or service upgrades that automatically continue at the consumer’s expense unless cancelled, it would serve more as a promotional vehicle for Netflix than a means of providing redress to consumers, and could leave some consumers in a worse position than if they had decided not to participate. Second, the notice to class members does not adequately inform them about the existence of the negative option, and the settlement agreement does not require disclosure of the terms of the negative option plan and fails to specify how consumers can cancel.